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As most companies try to achieve their targets, business practicessuch as outsourcing are increasing. The paper seeks to explain theadvantages of performing outsourced work within the business premisesand the reasons for not doing the work in-house. It shall also focuson why firms may not just forget about outsourcing after a failedattempt and why companies might collaborate when hiring the externalservices.

Deaconess Clinic decided to outsource the food service and had theemployees perform their work within the hospital (Friedman, 2004).The advantage of such a motive is that it enabled the staff tounderstand the culture of the clinic and maintain the quality of foodgiven to patients. Working within the hospital also allows theworkers to develop a sense of belonging assuring them of their jobsecurity. Other hospitals might outsource the food service, butrefuse the work from being performed in-house because of limitedspace within the medical facility that could be used for alternativefunctions (Friedman, 2004).

Outsourcing the housekeeping services at Deaconess Clinic may havefailed since the hospital had to rehire its employees. However, themanagement cannot just forget about outsourcing because of thefinancial consideration (Friedman, 2004). It is cheaper to outsourcethe service than hiring their employees who require monthly salaries.Besides, the housekeepers are experts in their work, which impliesthat by rehiring the workers, the clinic has to incur extra expensesof training their staff to ensure they meet the quality standards.

Collaborating with another hospital to obtain laundry services isbeneficial for Deaconess Clinic as it enhances business relations andminimizes the level of competition among them. The facilities alsoboost their bargaining position that enables them to get the laundryservices at fair prices. The hospitals also get to share the utilitycosts and overcome labor issues, which allows both facilities toconcentrate on their core duties (Friedman, 2004).


Friedman, N. (2004). Is Outsourcing the Solution? Perspectives onSurgical Instrument Reprocessing. Retrieved fromhttp://www.hpnonline.com/inside/2004-06/outsourcing.htmAccessed on 13/10/2016

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