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Current event article related to the management topics - Essay Example

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Outsourcing refers to the business procedure of contracting part of a current business process or function of an organization to an independent entity. The outsourcing organization ceases to partly or wholly to perform the outsourced process or function internally and opts to…
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Current event article related to the management topics
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Outsourcing Outsourcing refers to the business procedure of contracting part of a current business process or function of an organization to an independent entity. The outsourcing organization ceases to partly or wholly to perform the outsourced process or function internally and opts to buy it as a completed product or service. The reverse of outsourcing is in-sourcing. Outsourcing can either be domestic or foreign. Outsourcing originated in America at the beginning of the 21st century. It has since picked up in many modern economies including china.
In China, services are outsourced from local employment agencies. Such agencies are usually established under the Chinese Labor Contract Law to provided workers who can offer services for subsidiary and temporary positions (Chen). Contracts for the outsourced workers are signed with the employment agencies and not the companies that the employees end up working for. Such an arrangement constitutes domestic outsourcing and it provides a means through which organizations can easily address the issue of labor shortfalls as a result of employee turnover by having a quick access to qualified labor. Domestic outsourcing has also helped organizations to manage their labor costs by only hiring the exact amount of labor needed during a particular time.
Domestic labor outsourcing has been widely used in administrative, research and teaching posts in universities in China. However, the outsourced staff enjoys fewer social security benefits and lower wages compared to the regular workers on similar jobs. They are also discriminated by the organizations’ training and promotion opportunities. The practice has been blamed for the rising cases of inequalities among workers especially in public service (Chen).
In Beijing alone, universities have outsourced an approximated 3,500 workers in administrative, teaching and research positions. The figure is 1000 less in Shanghai (Chen). The domestic outsourcing model should be reviewed to ensure equal rights are enjoyed by all employees in the public sector.
Works Cited.
Xin, Chen. Nation: China Daily. 7 May 2012. Retrieved on: 7 May 2012
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