Outsourcing likely to be enduring trend

PHOTO: AFP

Sometimes, there is no way out but to outsource ("Labour MP hits out at outsourcing for keeping wages low"; Sunday).

There must be a myriad of reasons why companies turn to outsourcing, although some may perceive it as using cheap labour.

Some do so as a means to overcome their economic woes, while others need to outsource as a last resort because of rapid staff turnover.

Manpower constraints have adversely impacted business operations and services, as companies suffer sales and production problems. When such problems persist, with no end in sight, the only solution is to engage an outsourcing provider that can meet a company's specific needs.

In today's work environment, employee loyalty is hard to come by as workers have no qualms about jumping ship for diverse reasons.

If we study the issue in proper perspective, the outsourcing trend is likely to be an enduring one.

In an outsourcing situation, the employer enjoys delivery and execution backed by performance guarantees, as well as experience and integrated services.

More than that, the employees have much to benefit by leveraging their experience and that of the service provider.

Jeffrey Law Lee Beng

This article was first published on Feb 17, 2016. Get a copy of The Straits Times or go to straitstimes.com for more stories.