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Outsourcing to evade extra expenses

Discussion in 'Employment and Human Resources' started by Corazon, May 12, 2016.

  1. Corazon

    Corazon Entrepreneur

    In the Philippines, outsourcing means your business wants to hire employees that cannot be permanent. Take note that permanent employees have benefits particularly the bonuses. An outsource is the responsibility of the agency or outsourcing company and the host business is freed from the responsibility of added expenses. This is legally done and the standard not only for small but also big businesses. Most of the outsourced workers are security guards and maintenance people (janitorial).

  2. T J Tutor

    T J Tutor Administrator Entrepreneur

    I use a great deal of outsourcing and have for over forty years. Outsourcing has been around a very long time. I've done it in the restaurant and nightclub business, the auto industry, IT supplies manufacturing and distribution, angel investing, location sourcing, software development, real estate, and a host of other industries.

    Outsourcing is sometimes long term and sometimes short term. It isn't generally chosen as a means of avoiding benefits as much as not having to add to staff, also as a matter of convenience, and often the independent contractors don't want to be an employee.
  3. briannagodess

    briannagodess Entrepreneur

    I remember in my university, we have the cleaning personnel and security guards. They were from an agency called "Jamas," it says so in the uniforms of the cleaning staff. Anyway, we usually talk with them and bond with them, the cleaning staff. Most of the guards are snobbish, though there were a few that were nice.

    Basically, it works like you said, they were outsourced and the company or agency they came from found them. But after six months, they would be replaced by new workers. We were always sad whenever our favourite workers are gone since we have bonded with them and has developed friendships as well. But yes, that's the thing with outsourced workers, they cannot stay in a place for more than six months.

    I don't know with other countries... But from where I am, outsourcing these contractual workers are more beneficial for the companies and agencies. They don't have to pay for their benefits. There is no 13th month pay as well. They can just get a newer batch of employees after six months.

    But as @TJ Tutor said, that isn't always the case. Of course, some employees do choose to be freelancers or contractors and that's great as well. I think the benefits for said employees are that they don't really need to pay taxes, at least here in my country, for freelancers. Then, they can work on different part-time jobs and potentially earn more money in a day.

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