Outsourcing is a concept that is part of business terminology. It could be defined as the strategy that consists of hiring another entity to provide a specific service. In other words, outsourcing equals outsourcing, although the term outsourcing is also used.
The main reason for outsourcing or outsourcing is the reduction of financial costs. On the other hand, the outsourced company offers greater specialization in the sector. Let's take a simple example: a company dedicated to the transport of passengers subcontracts to another to clean the coaches. This strategy involves a transfer of employment, which can be offered in a local or international dimension.
Regarding the general mechanism of outsourcing, the fundamental idea is that the contracted company provides the workers with the machinery and infrastructure necessary for the correct development of the service.
Labor outsourcing operates under the strategy of delegation of functions and, of course, has its defenders and detractors.
In favor of outsourcing
Third-party companies are specialized and the consumer can enjoy a better service in every way. According to the business approach, outsourcing is a strategic alliance that enables companies to perform tasks that are not typical of their sector. On the other hand, to avoid possible abuses in working conditions, some countries have imposed legislation that protects workers with this type of contract.
Outsourcing is explained as a phenomenon typical of globalization, a reality that allows directing economic activity with a broader vision. Along these lines, it should not be forgotten that many small companies have been able to grow thanks to this trend.
Against outsourcing
This modality is usually accompanied by a negative effect on employment conditions and from the perspective of the unions there is a violation of workers' rights. In fact, outsourced companies periodically renew their staff to prevent them from staying for a long time in the company, thus saving vacations and all kinds of benefits.
This situation has led some countries to ban subcontracting (the case of Ecuador is a very significant example). The absence of regulation in this type of work is a threat to workers, which is why some consider that the reality of the market and globalization cannot go against the fundamental rights of workers.
Photo: iStock - Emir Memedovski
