Marshal and Gordon Case
Outsourcing : Employer - employee
Relationship a Myth?
An insight into the legal scenario surrounding the concept of outsourcing
Alisha Gupta
HRM 2012- 2014
Round The World
Outsourcing
Outsourcing is the contracting out of an organization’s business activities (functions and processes) to an outside service provider where the provider is responsible to carry out the activity that was currently, or could be, undertaken by the organization.
Earlier outsourcing was usually carried out for organization’s non-core activities to save money but now outsourcing is omnipresent.
Firms are outsourcing a wide range of activities ranging from research and development to marketing, from production to assembly, distribution to after sales service. Today, even activities like security and public relations are outsourced.
Predominantly, there are two kind of outsourcing:
With manpower – where the service provider’s employees work inside the premises of the organization. For example, company X has outsourced its security department to company ABC, then ABC’s employees operate at the location of company X.
Without manpower – the service provider’s employees do not work inside the organization premises. For example, if company X is an electronics company and has outsourced the after sales services of its products then the service
The world longest strike, which lasted nearly a decade has come to end by hospitality workers at the Congress Plaza Hotel in Chicago on the night of 29th may 2013. The strike was started on June 15, 2003 and the striking workers had long called for wage and benefit increases and job security.
IRound The World provider’s employees work need not work at the parent organization’s location but will extend services at the customer’s location. Why Outsourcing
Save Costs: To save the costs associated with defined benefits for permanent employees in labor-union contracts and as guaranteed by various labour laws in the
Relationship a Myth?
An insight into the legal scenario surrounding the concept of outsourcing
Alisha Gupta
HRM 2012- 2014
Round The World
Outsourcing
Outsourcing is the contracting out of an organization’s business activities (functions and processes) to an outside service provider where the provider is responsible to carry out the activity that was currently, or could be, undertaken by the organization.
Earlier outsourcing was usually carried out for organization’s non-core activities to save money but now outsourcing is omnipresent.
Firms are outsourcing a wide range of activities ranging from research and development to marketing, from production to assembly, distribution to after sales service. Today, even activities like security and public relations are outsourced.
Predominantly, there are two kind of outsourcing:
With manpower – where the service provider’s employees work inside the premises of the organization. For example, company X has outsourced its security department to company ABC, then ABC’s employees operate at the location of company X.
Without manpower – the service provider’s employees do not work inside the organization premises. For example, if company X is an electronics company and has outsourced the after sales services of its products then the service
The world longest strike, which lasted nearly a decade has come to end by hospitality workers at the Congress Plaza Hotel in Chicago on the night of 29th may 2013. The strike was started on June 15, 2003 and the striking workers had long called for wage and benefit increases and job security.
IRound The World provider’s employees work need not work at the parent organization’s location but will extend services at the customer’s location. Why Outsourcing
Save Costs: To save the costs associated with defined benefits for permanent employees in labor-union contracts and as guaranteed by various labour laws in the