Recently, an important news has come out for outsourced workers. According to this news, now outsourced workers are likely to get salaries directly from the department. This change can not only be beneficial for the employees but can also bring about a major change in the entire outsourcing system.
In this article, we will learn about this new change in detail. We’ll understand why this change is being made, what its impact will be, and how it will be implemented. Also, we will also know how this change will change the lives of outsourced workers.
What is outsourcing?
Outsourcing is a process in which a company or organization hands over some of its functions to an external agency or company. This procedure is done for several reasons, such as:
- cost reduction
- advantage of expertise
- Focusing on core business
- increase flexibility
Some common examples of outsourcing are:
- call center services
- IT support
- Accounting and Payroll
- Marketing and Social Media Management
Overview of Outsourcing
aspect | Description |
Definition | outsource work |
Objective | Reducing costs, taking advantage of expertise |
Benefit | Flexibility, focus on core business |
Challenges | quality control, communication problems |
key areas | IT, Customer Support, Accounting |
current trend | Remote work, AI integration |
Future | Hybrid Model, Skill-Based Outsourcing |
Effect | Global Workforce, Digital Transformation |
Current Outsourcing Model
Currently, in the outsourcing model, employees get their salaries through the outsourcing agency. This process involves several steps:
- The department makes payment to the outsourcing agency.
- The agency deducts its commission.
- The remaining money is given as salary to the employees.
Some advantages of this model are:
- The department does not have to worry about HR management.
- There is flexibility in the number of employees.
But it also has some disadvantages:
- Employees get less salary.
- Job security is less.
- Chances of benefits and promotion are less.
Proposed new model: Direct Payment
In the new proposed model, outsourced workers will receive salaries directly from the department. There are several reasons behind this change:
- Employee Welfare: Employees will get better salaries and benefits.
- Transparency: There will be more transparency in the salary distribution process.
- Motivation: The morale of employees will increase, which can improve their performance.
- Cost Cutting: Money spent on middlemen will be saved.
Features of the new model
- Direct Payment: Salary will go directly from the department to the employees’ account.
- Equal Pay: The policy of equal pay for equal work will be applicable.
- Benefits: Employees will be able to get benefits like other government employees.
- Job Security: Job security will increase.
impact of change
The impact of this change will be wide-ranging and will impact multiple stakeholders:
- Outsourced Workers:
- better pay
- more job security
- better job satisfaction
- Department:
- better performance
- low turnover
- better control
- Outsourcing Agencies:
- Need for change in business model
- Looking for new opportunities
- Society:
- better quality of employment
- reduction in economic inequality
process of change
This change will not happen overnight. A systematic process will be followed to implement this:
- Policy Making: Formulation and approval of new policy by the government.
- Legal framework: Implementing necessary legal changes.
- Pilot Project: Starting pilot projects in some selected departments.
- Feedback and Improvements: Improvements based on feedback from the pilot project.
- Widespread Implementation: Gradual implementation across all departments.
Disclaimer:
This article is for informational purposes only. Although we have attempted to provide accurate information, it is important to note that this policy is still in the proposed stage and may take time to implement. Please confirm with official government sources before taking any action. Policies and rules are subject to change, so contact the relevant department for the latest information.