Operations Management and Overall Business Goals
A hospital may outsource various services from an outsourcing vendor. Some of these services include food, housekeeping, and laundry services. The hospital may choose for the outsourced service to occur in the hospital premises or a different location. The latter allows for a better quality service while meeting the standards of the hospital. On the other hand, if the hospital decided that the outsourced service occurs outside the hospital, then the rationale may be that the hospital believes that the outsourcing vendor will fulfill the promise of providing quality and cost effective services. One reason for this is that the hospital may have worked with the outsourcing company previously and approved their services.
A hospital may make efforts to outsource certain services such as housekeeping because of the benefits that it would bring. Though the outsourced housekeeping employees may not feel a sense of belonging in some instances and thus reduce turnout, applying the efforts of outsourcing housekeeping may be beneficial. The benefits may be substantial financial savings and the sourcing of employees from other locations. Finally, when hospitals partner to outsource services from the same outsourcing vendor, they may experience lesser cost and improved quality of service. The reason is that the outsourcing company may leverage on the business volume and decide to reduce costs and provide a better quality of service.
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