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New corporate mantra: Employee outsourcing


 

 
New corporate mantra: Employee outsourcing
Financial Express - Bombay,India

Ahmedabad, Want to try your hand at different jobs, yet get a regular salary? Then, a firm providing staffing solutions is the answer. In an attempt to cut cost, avoid union problems and keep the headcount less, companies are approaching firms who lease out their employees on assignment- or project-basis. Employee outsourcing is the new mantra in the corporate world where not only mutinationals but small companies, too, prefer employing temporary staff.

‘‘We lease out employees and ensure that they work in a healthy environment even if it’s on a short-term basis. We pay their salary, provident fund, insurance and other statutory benefits though they work for other companies depending on their capabilities,’’ says Deep Mukherjee, vice-president of Team Lease, a Delhi-based employee outsourcing company.

Team Lease provides temporary staff to more than 18 companies in Gujarat.

‘‘The market for temporary employees is expanding. Nowadays, big companies avoid keeping too many permanent employees as it shifts the focus to managerial issues,’’ says Mukherjee, who has over 16,000 employees working for other firms.

Manager-Operations (Gujarat) for Voltas, Manoj Sharma believes appointing temporary staff has several advantages. ‘‘It is a cost-cutting measure and also helps the organisation to work with less people. For permanent employees, we have to provide all benefits, then appoint people to handle their accounts. Here, people are employed as per the assignment. Once the job is done, the person can leave,’’ he adds.

Blossom Rana, 29, who currently works with Kotak Mahindra bank, is on the payroll of a staffing solution company. ‘‘I work for Kotak but am not paid by them,’’ says Blossom, who believes working as temporary staff provides more exposure. ‘‘And, the pay package is at par with permanent employees,’’ she adds.

For Falgun Parikh, outsourcing proved a great opportunity. A retired executive, the 62-year-old now works as an advisor to several automobile companies.

‘‘Though I am retired, I work for 3-4 four hours daily,’’ says Parikh, who feels that outsourcing helps big organisations to cut cost and increase efficiency.

For housewives, too, temporary employment comes as good news. ‘‘My husband has a transferable job. Each time he shifts his base, I have to move out with him. Working as a temp is ideal as there are no strings attached,’’ says Malti Upadhyay, wife of an Army officer who currently works as project head for a design company.

From clerks to top management — employee outsourcing is fast catching in the corporate world, says an IIM-A professor who is currently studying new trends in the outsourcing industry.

However, there’s a flip side to this new-age job arrangement, says Pratyush Joshi, senior executive with a telecom company.

‘‘If a temp is exploited at a work place, the staffing solution company may not support him or her as nobody likes to lose a client firm,’’ says Joshi, adding,

‘‘After all, the entire arrangement works due to the understanding between the two companies. The employee is just moved from one organisation to another. When differences arise, the employee may have to fight a lone battle as the parent company cannot offend the client that gives them commission as per the number of employees recruited. Moreover, when an employee is not ‘leased out,’ he or she may not even get a salary. How about that?’’
 

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