Case Study, "Outsourcing of Hospitals”

Introduction

Outsourcing can be defined as the hiring of an employee to perform certain task on a contractual basis from outsourcing companies. With the objective of reducing cost many organization have started outsourcing. In the case we can see that Hospital outsourced many things like cafeteria food service, housekeeping, and also laundry service. While outsourcing was done it was different case for different job. Like for cafeteria food service, it became quite successful where for other outsourcing it was not.

Advantage of having outsourced work perform within hospital

The main advantage of having outsourced work perform is the cost benefit which will directly or indirectly impact the hospital. It doesn’t mean that with outsource everything will fine and smooth. It has its own draw backs as well which should be properly analyzed before going to outsource. Some of the advantages of having outsourced work perform within hospital can be the feel of ownership of the job which was possible because of the family atmosphere in the kitchen and the cafeteria and felt connected. This will help them to perform better and provide better service to the customer which is in fact a very good for the hospital. Another advantage can be that it can be monitor on regular basis as the work is performed within hospital. Suppose if a different hospital outsourced its food service but decided not to have the work performed in house then the work cannot be monitored in regular basis also the sense of family atmosphere might not be present which will not motivate them to perform better.

Outsourcing of housekeeping service

One of the major reasons for outsourcing is to take an advantage of the specialized work. It is not necessary that one should be expert in every task; hence to take an expertise work outsourcing is done. In the case it is shown that outsourcing housekeeping didn’t go well. They had to face high turnover which is obviously a problem for hospital. Hence they had hire employees but used outsource company to manage housekeeping. Though they had to hire employee, they might not have gained expertise in housekeeping and to make sure that everything is well and get the best result they thought of using outsource company to manage housekeeping.

Outsourcing of laundry service

There might be several reasons why laundry service was outsourcing from another hospital. Another hospital might have the best laundry system, due to lower cost, lack of employees and equipment in own hospital, needed to follow specific rules and regulation. Might be with all these benefits, it might have been rationale for asking another hospital to join for laundry service.