Outsourcing

Topics: Costs, Outsourcing, Performance Pages: 1 (294 words) Published: June 20, 2013
As “Deaconess Clinic” decided to outsource its cafeteria food service, the advantages of this decision are: i. Because of outsourcing, employees were more expertise. ii. Employees felt connected with the organization because of the family atmosphere in the kitchen and cafeteria which increased their productivity. iii. They did not feel isolated because of the friendly environment. iv. The clinic can avoid incurring fixed cost.

v. As the cafeteria was inside the organization, management can easily monitor the activities of the outsourced employees. vi. As the outsourced employees are specialized, they can offer higher quality than the employees of the clinic. If a different hospital outsourced its food service but decided not to have the work performed in house the rationale would be: i. The flexibility of the performance of the workers would be lesser. ii. It would be difficult to always maintain the time.

iii. The additional costs would be high.

The decision of outsourcing in the housekeeping sector did not really work for “Deaconess Clinic”. The employees felt isolated and turnover rate became a problem. For which they had to be rehired. The reasons why the clinic should really forget about outsourcing for the housekeeping sector are: i. After rehiring, clinic has enough man power, time and skill. ii. If the workers get opportunity to perform their work properly, then they will not feel isolated. iii. There would be less risk of losing control over the employees.

For laundry service, rationale for asking another hospital to join it would be:

i. Cost effective.
ii. It would help the clinic to fulfill the lack of equipments, skills and time. iii. There will be more customer satisfaction if the expertise employees are hired. iv. It would be helpful to meet the wide fluctuation deman.
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