Case Study

Successful public sector outsourcing


An outsourcing business secured a major contract to supply occupational health services to a major London blue-light organisation with around 45,000 employees. This represented a sales growth of around 20%.

However, this win came during the final stages of the business being sold to a PE-backed competitor. A complex public sector contract added to the challenge of delivering the new service on time, to quality and within the budget.


A joint team was created to manage the entire project, with representation from the outsourcer and their client. Duplication of resources was eliminated through this approach, with a single project plan and governance structure.

Over the year-long project, the work included:

  • Process analysis and kaizen workshops to eliminate waste
  • Implementation of new IT systems, including strict security requirements and interfaces to new client applications
  • Service design to meet and exceed contractual requirements
  • Organisation design
  • Resource planning to match permanent headcount to demand
  • Secure Digitisation of over 150,000 health records
  • Recruitment of contract management team
  • TUPE of staff to the new business
  • Change management and communications with employees and client stakeholders
  • Development of contract performance indicators
  • Rationalisation of locations
  • Performance management improvements

To add to the challenges, there were several high profile incidents in the capital during the project, diverting resources to help front line workers. It was demonstrated that the new processes were much more effective at dealing with these crises.


From the outsourcing business’s perspective, the project was a great success. Revenues increased as planned, and the expected operating savings were delivered. This was achieved well within the implementation budget. The reputation gained on the project opened the door to other opportunities for growth with other blue-light services across the country.

Their client was also extremely happy with the outcome. Service was maintained and improved throughout the transition. A key stakeholder described it as the best transformation project that they’d ever seen. Even more unusual, the project came in significantly under budget, a feat never seen before.

This successful outsourcing project saved the tax-payer over £1 million per year, and improved the quality of care and support to a critical workforce.