Outsourcing Isnt Always About Cost.
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    • Outsourcing isnt always about cost.

    Niyamath Parveez

    CEO at WOX Systems
    If outsourcing is being used to help a firm produce a better quality of products or lower their own costs, the people affected by are it are very close to the production level. There will obviously be an emotive impact on anyone who loses their job due to an outsourcing decision and their immediate families will be affected but that’s usually about it. This makes it more straightforward to undertake a cost benefit analysis on the impact of outsourcing and if a firm is making a decision, they can have the final say using price as their bottom line. This is why outsourcing has become so popular in recent years as it offers companies a fantastic opportunity to reduce their costs and improve the standard of service they offer to consumers.

    However, when a local council is looking to outsource a number of its key provisions and services, there can be a far greater issue to deal with. Outsourcing can be used for any task imaginable, not merely for telephone calls or product manufacturing and a council in English is looking to take an innovative step in outsourcing which has not been warmly received by everyone in the local community. Buckinghamshire County Council are looking to stop employing home care social workers directly in a move that will hopefully save the cash strapped council a considerable amount of money. This means the council is looking to outsource its provision of social workers for old aged pensioners and disabled people. This is clearly an issue that has gotten people up in arms and has caused disquiet and unrest amongst local citizens. Although not everyone in the area will know someone who is immediately affected by this decision, this sort of decision is one that interests many people and is sure to spark debate amongst local citizens.

    It is easy to see why the council have taken this move as the provision of specialist and potentially around the clock care can be extremely expensive and is no doubt a drain on resources. However, it is a cost that most people are happy to have provided to those who need it most and cutting back this service would be low down in the list of priorities for many residents. There is a fear that the cost cutting exercise being undertaken by the council will lead to an inferior service being provided to those who rely on the social care and support and this could have a hugely negative impact on their standard of living. The credit crunch is affecting everyone and whilst councils have a duty of care to obtain the best quality services for as low as price as possible, the people who rely on the care are also owed respect and the best provision of help that can be afforded.

    Outsourcing is a fantastic tool for businesses and organizations that need to lower their costs but it is clear that in certain areas, a deeper level of consideration has to be entered into. The financial aspect of outsourcing is always vital and a great way to initiate investigations into the benefit of outsourcing but sometimes there needs to be a study of the wider picture where outsourcing is involved.
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