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

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