Topic > Essay on Outsourcing - 883

Impact of Outsourcing on Employees in Facilities Management Outsourcing is the strategy that has gained momentum globally in facilities management. The term outsourcing means subletting part of the company's work to some external manufacturer or service provider, for many tangible and understandable reasons. The competitive services market today faces multifaceted challenges offered from many directions. The current saturation of markets due to the prolonged global recession has triggered fierce competition among service providers to make the most of the limited opportunities available in the market. Such competition in the service market forces service providers to accept market dictates both in terms of reducing prices and improving the speed of service provision. We all know that when the market dictates it, the focus of service providers shifts from price to cost of service. Increasing market pressure therefore forces service providers to focus on reducing the costs of operations. One of the most popular countermeasures to address cost pressures in today's industries is the partial outsourcing of operations. One of the main obstacles to reducing costs today, especially in developed countries, is due to rising wages of the workforce. An industry cannot even think of reducing the costs of the operation if the wage rates in the organization are increasing or at least difficult to lower. In these circumstances, companies are left with no choice but to sublet part of their operations to low-cost external suppliers in order to make the most effective use of their facilities at cheaper rates and with quick turnaround times. .....just the use of low wages. However, this does not mean that taking advantage of the supplier organization's low wages has no meaning for the company's outsourcing. It is actually one of the main concerns, but the other aspect of outsourcing, such as speeding up service delivery and allowing the company to provide its services to a much larger market, are other important incentives that force companies to sublet its operations partially. However, it is necessary to eliminate the misconception among an organization's employees that outsourcing would affect their economic benefits and they must realize that only those operations that cost more without ensuring comparable productivity are logically outsourced. In this sense, outsourcing is a way to reduce the fat that comes from the operation of the company and make it more sustainable in today's competitive business world..