Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs

This paper explores the causes of the significant increase in the Malaysian Ministry of Health (MoH) healthcare support sevices. The issue was derived from the drawbacks of outsourcing which surfaces from the transaction costs. Coupled with the benefits to the host organisation are the drawbacks nam...

Full description

Bibliographic Details
Main Authors: Mustapa, Fara Diva, Mustapa, Muzani, Ismail, Fuziah, Ali, Kherun Nita
Format: Conference or Workshop Item
Language:English
Published: 2006
Subjects:
Online Access:http://eprints.utm.my/653/
http://eprints.utm.my/653/1/CM_58%5B1%5D._Outsourcing_Malaysian_Healthcare._Fara.pdf
_version_ 1848889966137966592
author Mustapa, Fara Diva
Mustapa, Muzani
Ismail, Fuziah
Ali, Kherun Nita
author_facet Mustapa, Fara Diva
Mustapa, Muzani
Ismail, Fuziah
Ali, Kherun Nita
author_sort Mustapa, Fara Diva
building UTeM Institutional Repository
collection Online Access
description This paper explores the causes of the significant increase in the Malaysian Ministry of Health (MoH) healthcare support sevices. The issue was derived from the drawbacks of outsourcing which surfaces from the transaction costs. Coupled with the benefits to the host organisation are the drawbacks namely the information costs, negotiating and bargaining, and the costs of policing and enforcement. It later affects the outsourcing process and requires additional spending to the client. The findings showed that the bounded rationality, opportunism and the asset specificity are the main reasons for the existence of the three. Another contributing factor that led to the increment is was the broad scope of the outsourcing implemented by MoH for an extension of 15 years. It exposed the private service provider to uncertainty that later created a risk averse behaviour particularly on their pricing.
first_indexed 2025-11-15T20:34:34Z
format Conference or Workshop Item
id utm-653
institution Universiti Teknologi Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T20:34:34Z
publishDate 2006
recordtype eprints
repository_type Digital Repository
spelling utm-6532017-09-06T04:49:28Z http://eprints.utm.my/653/ Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs Mustapa, Fara Diva Mustapa, Muzani Ismail, Fuziah Ali, Kherun Nita GV Recreation Leisure This paper explores the causes of the significant increase in the Malaysian Ministry of Health (MoH) healthcare support sevices. The issue was derived from the drawbacks of outsourcing which surfaces from the transaction costs. Coupled with the benefits to the host organisation are the drawbacks namely the information costs, negotiating and bargaining, and the costs of policing and enforcement. It later affects the outsourcing process and requires additional spending to the client. The findings showed that the bounded rationality, opportunism and the asset specificity are the main reasons for the existence of the three. Another contributing factor that led to the increment is was the broad scope of the outsourcing implemented by MoH for an extension of 15 years. It exposed the private service provider to uncertainty that later created a risk averse behaviour particularly on their pricing. 2006 Conference or Workshop Item PeerReviewed application/pdf en http://eprints.utm.my/653/1/CM_58%5B1%5D._Outsourcing_Malaysian_Healthcare._Fara.pdf Mustapa, Fara Diva and Mustapa, Muzani and Ismail, Fuziah and Ali, Kherun Nita (2006) Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs. In: ICCI-2006. (Unpublished)
spellingShingle GV Recreation Leisure
Mustapa, Fara Diva
Mustapa, Muzani
Ismail, Fuziah
Ali, Kherun Nita
Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs
title Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs
title_full Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs
title_fullStr Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs
title_full_unstemmed Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs
title_short Outsourcing in Malaysian healthcare support services: A study on the causes of increased operational costs
title_sort outsourcing in malaysian healthcare support services: a study on the causes of increased operational costs
topic GV Recreation Leisure
url http://eprints.utm.my/653/
http://eprints.utm.my/653/1/CM_58%5B1%5D._Outsourcing_Malaysian_Healthcare._Fara.pdf