Public Private Partnership and Outsourcing Programme for Finnish Defence
Defence sector
The Finnish Ministry of Defence initiated a significant partnership programme to improve the productivity of the Finnish Defence Forces and to create an environment whereby the Defence Forces can better focus on its core functions.
Objectives of the project
The Finnish Ministry of Defence initiated a significant partnership programme to improve the productivity of the Finnish Defence Forces and to create an environment whereby the Defence Forces can better focus on its core functions. The goal was to cut costs and make operations more flexible by reorganising the support functions or outsourcing them to selected partners. The partnership program started in 2001 and was completed by 2007. The programme was owned by the Ministry of Defence and the Defence Command was responsible for its execution.
The partnership programme included development of seven different support functions:
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Catering services
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Garment services
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Finance and HR operations
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Healthcare services
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Maintenance functions
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Transportation services
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IT services
BearingPoint assisted the client in setting the future state of the programme as well as to prepare the programme plan. The client also requested that BearingPoint evaluate all the pre-studies and make recommendations for future actions regarding the whole partnership program.
Measurable & concrete results
Finnish Defence Forces reached the partnership programme’s goals in all of those aspects of the support function reorganisation that were assisted by BearingPoint.
Results of the programme included:
Catering services:
- Change in operating model: 95% of the functions were successfully transferred to the formed in-house service centre, 5 % were outsourced
Garment services:
- Partial change in operating model: one of the operating units was outsourced as planned and two units remained within the Defence Forces
Finance and HR operations:
- Change in operating model: all of the functions were successfully transferred to the newly-formed in-house service centre
Healthcare services:
- Change in operating model: specialised medical care was outsourced, while local health care remained in the garrisons as planned
Maintenance functions:
- Change in operating model: planned functions were outsourced to partner Millog Oy
- BearingPoint assisted in various areas of reorganising the maintenance functions
