September - 2016 - issue > CEO Insights
Create Your Own Pool of Employees
S Narayan, Founder & Managing Partner, LIFT Academy
The service economy depends a lot on people who deliver the services. Most of the people employed for delivering the services are at the bottom of the pyramid, at entry level jobs. These jobs are typically outsourced to staffing companies or labour contractors. Taking cue from it even manufacturing companies has taken to out sourcing of entry level jobs. The reasons for such outsourcing are many:
- These jobs are not considered core to the business and are outsourced.
- The fear of unionism and concerted labour action forces companies to park such jobs on staffing company payrolls.
- Outsourcing is seen as an option of managing the local political or other pressures by hiring people through these local leaders.
- The fluctuations in the market demand requires flexible staffing, which is easily done by outsourcing them.
- Outsourcing such jobs gives the companies multiple options and ability to manage costs as opposed to hiring in-house.
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