MSP | Outsourcing and Partnerships
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Ensuring access to the needed levels of staffing does not necessarily mean having to directly hire all personnel. Solutions exist where external entities can take on the functions and deliverables linked to a particular staff or department (outsourcing), assign an existing staff member to another organisation on a cost-sharing agreement, or team up to develop a shared staffing pool.
For local and national NGOs and NGO networks in developing countries, outsourcing and partnership-based staffing models can significantly reduce permanent payroll burdens while ensuring access to essential expertise.
In certain circumstances, contracting specialised service providers—such as firms offering finance and audit services, IT support, HR management, logistics, transportation, or M&E—can provide professional, high-quality support without having to hire and retain internal staff. These can be found at national NGO conferences, via internet searches or through publishing requests for Expressions of Interest in the local press or social media.
Universities and training institutes can be valuable partners through fellowship schemes, internships, or graduate placements, allowing NGOs to benefit from emerging talent while contributing to local capacity development.
NGO networks and consortia can also share senior functions such as legal counsel, communications, grant management, or security advisors across multiple organisations, distributing costs while strengthening collaboration and standards. Short-term consultancies, retainer contracts with independent experts, or partnering with international NGOs to embed technical advisors for limited periods are additional strategies that can help local organisations access capabilities they cannot yet afford to maintain internally.
However, these arrangements also come with considerations. Outsourcing can create dependence on external actors, reduce organisational learning if not paired with knowledge transfer, and may risk misalignment with organisational values or humanitarian principles if providers lack sector understanding. Shared staffing agreements require trust, clear governance, and strong coordination mechanisms. Fellowship and internship models must be managed ethically to avoid exploitation and ensure meaningful learning.
Despite these challenges, when carefully designed with clear roles, accountability mechanisms, and a focus on strengthening internal capacity over time, outsourcing and partnership-based staffing models can allow local NGOs to remain lean, financially sustainable, and mission-focused while still accessing the breadth of skills required to operate effectively in complex humanitarian environments.
PROS and CONS
Pros: Direct access to expertise that may not be available via internal recruitment; the organisation pays only for the level of work required or by deliverables; protection against unexpected staff turnover; lower general staffing costs; flexibility to increase or decrease scale and scope based on funding and needs; facilitates access to new technologies and approaches.
Cons: Upfront investment in procurement or partnership development process; more complex supervision processes; increased dependence on third parties; disruption if partner raises costs or terminates agreement; loss of directly control over processes; risk of selecting ineffective partners; fewer long-term organisational staff with institutional memory, commitment to the mission/vision of the organisation, and connection to the communities they are serving.
SELECTION CONSIDERATIONS
Function types: Are the functions outsourced or shared core or non-core? Is there risk in not directly managing these tasks? Can the organisation or network attract and hire the right level of applicants for these positions?
Partner profile: Does the partner understand the operating context, mission and structure of the client organisation or network? Is there sufficient alignment in values, language and ways of working?
Agreement type: Does the organisation seek a long-term or short-term (gap-filling) agreement? Should the agreement be strictly limited in scope and duration, include provisions to increase or decrease levels of support, be easily terminated on both sides?
Cost and funding: Does the agreement lead to cost savings immediately or in the future? How will the third-party be compensated?
EXAMPLES
Examples on Human Resource Management:
In Asia, local NGOs can bid to host a Fellow from VIA Global Community Fellowship, a programme that places a recent university graduate with a local NGO or social enterprise for a one-year period. All of the Fellow’s costs are covered by the programme. Similar initiatives exist in other parts of the world like the Lazord Foundation Fellowships in MENA.
There exist many professional service providers who work with local non-profits, particularly for common back-office functions like accounting, recruitment and IT systems administration. Communications, MEAL and transportation are also sectors where outsourcing options are common.
Around the world, there exist locally-based professional service providers who work with local non-profits, particularly for common back-office functions like accounting, recruitment and IT systems administration. Communications, MEAL and transportation are also sectors where outsourcing options are common. For larger national NGOs involved in direct service delivery, outsourcing these can also lead to significant cost savings. According to a study, the Kisoro local government in Uganda was able to reduce operating costs by 18% and increase performance by 160% through outsourcing many of its services.
Examples on Internal Management Systems:
Around the world, there exist locally-based professional service providers who work with local non-profits, particularly for common back-office functions like accounting, recruitment and IT systems administration. Communications, MEAL and transportation are also sectors where outsourcing options are common.
At the global level, NetHope is an example of partnership where different members (60 international humanitarian agencies) contribute to developing common technology solutions for membership-wide challenges.