Why outsource and what makes it work? Alternative arrangements for work in the health sector

Why outsource and what makes it work? Alternative arrangements for work in the health sector Suzanne Young Deakin University This paper addresses the question: In the health sector why have managers outsourced some functions in preference to others? The research specifi cally uncovers a reason for outsourcing which has not been highlighted in the literature; that being a desire to improve department management. The research has shown the importance of power, as illustrated in the use of outsourcing to improve department management and their associated resistance to change, and the importance of trust and loyalty between management and internal staff in retaining services in-house.