Outsourcing vs inhouse laundries - this question has been debated and discussed many times. We recently conducted a live poll asking 115 housekeeping professionals what they would opt for and a stark 70% majority voted for inhouse laundries. 

We dived a little deeper into this and asked 2 veteran industry experts to weigh the pros and cons of both these options at length. 

Amarnath Kumar, Executive Housekeeper, Sheraton Mall of the Emirates Hotel, Dubai

In the hospitality industry, laundry services are  critical aspects of ensuring customer satisfaction and maintaining the overall cleanliness and hygiene of the facility. A hotel or resort laundry needs are extensive and require dedicated resources, equipment, and personnel to ensure that they are met efficiently and effectively. Two main options are available for facilities when it comes to laundry services - outsourcing or in-house laundries. Both options have their advantages and disadvantages, and facilities must weigh these factors to determine which option best suits their needs.

Outsourcing laundry services involve contracting with a third-party provider to handle laundry tasks. In contrast, in-house laundries are operated and managed by the facility's own staff. The decision to outsource or maintain an in-house laundry facility can depend on several factors, including cost, quality, control, and convenience.

One of the most significant advantages of outsourcing laundry services is cost savings. Outsourcing providers often have large-scale laundry facilities, which allow them to leverage economies of scale, resulting in lower costs. This is especially beneficial for small and mid-sized hotels that cannot afford to maintain their own laundry facilities. Moreover, outsourcing laundry services eliminate the need to invest in equipment, staff, and infrastructure, reducing overall operating costs.

 On the other hand, in-house laundries provide a higher level of control over laundry processes, ensuring that the facility's standards are met consistently. Facility managers can closely monitor laundry operations, adjust processes as needed, and enforce quality control measures. This level of control can be crucial in ensuring customer satisfaction, as poorly washed or stained linens can lead to negative reviews and a decline in business.

 In-house laundry facilities also provide greater flexibility, enabling the facility to respond quickly to changing laundry needs. This is particularly important in the hospitality industry, where changes in occupancy rates and guest preferences can significantly impact laundry requirements. With an in-house laundry, facilities can quickly adjust processes, schedules, and equipment to meet changing demands, ensuring that laundry is always available when needed.

Another advantage of in-house laundries is the ability to offer same-day laundry services, which is an essential feature for high-end hotels and resorts. With an in-house laundry, staff can quickly process urgent laundry requests, ensuring that guests have clean and fresh linens and clothing when needed. This can significantly enhance guest satisfaction, resulting in repeat business and positive reviews.

In conclusion, both outsourcing and in-house laundry services have their advantages and disadvantages, and facilities must carefully consider their laundry needs before making a decision. Cost savings and convenience are often the primary considerations for outsourcing, while in-house laundries provide greater control, flexibility, and quality. Ultimately, the decision between outsourcing or maintaining an in-house laundry facility depends on the unique needs and priorities of each facility, and the best option will vary depending on the specific situation.

Sravan Kumar, Healthcare Quality Professional, FACHE, MHA, CPHQ and HACP

There has always been a long discussion in the healthcare industry whether hospitals should have an inhouse laundry or should the services be outsourced. When compared to hotels, hospitals always have an additional concern about managing infected linen. Some of the many things that organizations look at while deciding to have inhouse or outsourced laundries. Firstly, patient load i.e., the number of patients admitted, number of surgeries or procedures done in a day, and manpower deployed. Second, the availability of space and expertise inside the hospital, and finally, the costs of running the laundry operations. If the patient volumes are more and space is available, hospitals tend to have inhouse laundry operations as they can control the processes in managing the linen flow and infection control effectively. Setting up a laundry itself is not as expensive as it is in running the laundry in the longer run. Also, hospitals keep a keen eye on running costs as sometimes in the outlook of having high-quality laundry operations, the costs tend to go uncontrolled. Healthcare organizations increasingly are considering having a centralized laundry especially those who are running multiple healthcare organizations in a health system to optimize laundry operations, reduce costs and improve quality and this has already been done by few in the country. Those organizations which are small in size, tend to go with the outsourced laundry operations as it turns out to be more cost-effective compared to running in house. When laundry operations are outsourced, hospitals and hotels can benefit from the vast experience of external laundries that have been in the business for a long time and have the latest machinery and updated processes. Hospitals need to pay attention to the type of chemicals used in washing infected linen to prevent cross-contamination with other linen and patients getting clean linen. Usually, the hospital’s infection control team reviews these processes before establishing a contract and also do frequent visits at least once in 6 months to ensure that the processes are being run as per the infection control norms. Running costs of an inhouse is also a major factor pushing hospitals to outsource laundry operations and utilize the space available inside the hospital for revenue-generating services. 

I would like to conclude that whether to have in house laundry or outsource laundry operations depends completely on the need of the hospital, its size, and the control it would like to have on the laundry operations. When outsourced, some of the performance measures used by the hospitals to check the effectiveness of outsourced laundry are timely pickups and delivery, stained linen, number of returns, torn linen, and compliance to agreed upon infection control practices.

While in-house laundries are great, outsourced laundries bring a different set of benefits to the table. 

• Reduction in costs (CAPEX & OPEX)

 No on-site laundry development and maintenance costs, no electric bills, no detergent and chemical costs, and on top of that, absolutely no labour costs; freeing up at least a clear fourth of the operating costs. Not only this, but you’re also going to be saving a hefty amount that you would otherwise invest in assets like washers, machines, and dryer equipment.

• More space freed up

 To ensure laundry is being done systematically hotels need to dedicate a specific area for extensive housekeeping. Outsourced laundry means that it might take away from an area designed for revenue-generating facilities without compromising on the hotel capacity.

• Redirects focus to primary business needs

Outsourcing laundry helps redirect core business strategies, which is far more vital in warranting customer return.

•  Quality improved tenfolds

With an entire business is overlooking your linen and focusing on how to give you the best results, you’re guaranteed to have washed, folded, and sorted laundry returned promptly to your doorstep. 

In conclusion, there are both pros and cons to outsourced and inhouse laundries. Each facility has to literally weigh both the options and choose the best for them without any bias!