Jeanette et al
The article mentioned in later emails (including a great deal of shared
replies asking for a copy) is excellent and worth a read. I have not seen
it for a while, but from my memory of it and my experience of being both
provider and purchaser at different times, a very simple view is this.
1) If your organisation wishes to outsource but does not wish to change the
model of service, do all you can to dissuade them (and I am writing this as
an OH Provider).
a) The cost base of the service will not change and the provider will
require their profit margin, so it will be more expensive.
b) The purchaser will expect the same service or better for less and what
inevitably happens due to pure economics is a lesser service is provided for
the same cost or less cost. This leads to a lot of frustration on both sides
and often a strained purchaser/provider relationship because expectations
are not met for either party. There are few economies of scale to be had in
the OH business when taking over traditional services, which purchases,
especially procurement departments, fail to understand.
2) If your organisation wishes to be quite radical in changing the model,
then outsourcing can be worthwhile and cost effective. We have moved a
number of services away from a traditional onsite model to a remote model of
Case Management or use of a peripatetic resource. I know this has obvious
employment implications for encumbent staff, but none of us are immune to
market forces and the rapidly changing nature of our profession.
Happy to discuss more off list if you wish (and that's not a pitch for
business). Hope this helps and that the article can be posted soon.
Thanks
Lindsey Hall
Head of Nursing Services
AXA PPP healthcare Occupational Health Services
07779 014294
----- Original Message -----
From: "Jeanette Warran" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Thursday, January 06, 2005 1:37 PM
Subject: Re: - Pros and cons of insource or outsource OH
> Has anyone done anywork on the pros and cons of inhouse versus outsource
in
> the provision of OH.
>
> From an OH perspective I feel inhouse would meet the broader aims of the
> Company better but HR feels outsource is the only option.
>
> I have a meeting with HR and my manager next Wed and want to present a
> dispassionate assessment. Perhaps you can change my mind?
>
> Looking forward to your responses!!
>
> Jeanette
>
> Jeanette Warran
> Occupational Health Adviser
> 07812 218440
> Skanska Integrated Projects
> A Division of Skanska Construction UK Limited
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