Options Appraisal Opposes Outsourcing and Offshoring of Prescription Pricing Division, NHS Business Services Authority

ESSU was commissioned by UNISON Northern to prepare a detailed report on a PPD/KPMG proposal to outsource and offshore prescription processing. This comprehensive report examines value for money, risk assessment, insourcing trends, public cost analysis and other issues. A decision to outsource was expected in November 2006 but has been postponed indefinetly following intervention by the Health Minister.

Executive summary 4

  1. Introduction and context 8

  2. The Sourcing Options 14

  3. Options appraisal criteria and assessment 18

  4. Value for Money assessment 27

  5. Risk assessment framework 32

  6. PPD performance 39

  7. Insourcing trend gathers pace 41

  8. Why PPD must be in-house service 47

  9. Recommendations 52

Appendix 1: Private Sector Problems in the delivery of Public Sector IT Projects 54

Appendix 2: Employment Risks in Secondment, Transfer and ‘Choice’ Models 56

Appendix 3: CIP Business Case assessment of advantages and disadvantages of outsourcing now 59

Appendix 4: Calculation of the public costs of the outsource/offshore option 61


European Services Strategy Unit, Duagh, Camp, Tralee, County Kerry, Ireland.
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This document was created by Dexter Whitfield on 2008-03-29 14:32:14.
This document was last modified by Dexter Whitfield on 2014-09-13 12:16:01.
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