OUTSOURCING
CONFLICT
JINU. P. ISSAC
RESEARCH SHOLAR
BHARATHIAR UNIVERSITY
COIMBATORE.
ASST. PROFESSOR
PEOPLE INSTITUTE OF MANAGEMENT STUDIES
MUNNAD. P. O
KASARGOD DISTRICT
KERALA, INDIA.
PIN CODE-671541
Abstract:
Title
: Outsourcing Conflict.
Branch: HR.
Type : Research Paper
Description:
OUTSOURCING
CONFLICT
Organizations and corporate are now
on a rush to hug outsourcing as a remedy to financial mess. The business frames
are redesigned and rescheduled to support outsourcing environment. The
traditional staffing process is deemed as curse to a flourishing industry. How
the change be assessed? How far it will safeguard workforce? Will it initiate
another crisis with uglier heads? Is it a matter of prosperity or anxiety?
Merits and demerits are to be brought for in depth analysis. The standards of
comparison and interpretations are to be developed. The consequences are to be
born in mind before thick dependence on outsourcing. How the process is in
contradiction with tradition and comfort? The ultimate scope lies in utility to
people. To what extent the same can be guaranteed? Out sourcing no doubt, will
affect normal life if it is being irrationally used. In which industry? to what
extent? The proportion between outsourcing and staffing may be decided through
an internal mechanism. It is the right time to initiate a discussion over the
demerits of outsourcing at least in the corporate level. The oriental tradition
held outstanding perception on work, work life, work- life balancing, quality
work life and so on. How does outsourcing treat such great concept? Is it a
reason for contradiction and conflict in this realm? Such questions are being
discussed and deliberated to reach realistic conclusions.
Key Words:
· Outsourcing
· Dynamic and orthodox Economies
· Work Environment
· Comfort Propensity
· Paradoxical work practices
· Proportional outsourcing and
staffing
·
Conflict
reduction.
Bibliography:
1.
Indian take-away: off shore
outsourcing for small to medium-sized
Enterprises: Jim Downey: Exposure Publishing; Dec.2011.
2.
Outsource Smart: Daven Micheals; Mc
Grow Hill; Nov.2012.
3.
www.advantagesbs.com/blog/pros-and-cons-of-outsourcing..
www.chnsourcing.com>Reaserch.
Jun. 2007- At the heart of the problem is the inherent conflict of interest.
OUTSOURCING
CONFLICT
Irrespective of the
size of organizations, almost all business process units deem it fit that outsourcing
is the only way out from the financial mess the world is in and labor problems
aggravate the very same. It is a general notion that existence of right reasons
and availability of a right outsourcing partner, can help you streamline your
business processes, reduce your overheads and enhance business earnings.
The advantages of outsourcing explicitly
outweigh the disadvantages in various counts. The major and discernible advantages
of outsourcing are as follows.
Ø It
open up avenues to infuse efficiency in those areas of your business in which
you lack expertise.
Ø It
gives you access to skilled services at low cost.
Ø It
reduces your business expenditure on infrastructure, workforce hiring, training,
technology and software.
Ø It
allows you to focus more on your core areas of business i.e., when you
outsource, you are in a better position to use your manpower, time and money to
improve the efficiency and productivity that directly affect your bottom line.
Ø It
improves the overall efficiency of your business model, allowing you to serve
your customer better.
It
is not in tune with the business acumen to ignore the disadvantages as they
raise their ugly heads to eat into business profits.
v There
is a perceptible degree of threat to security and confidential business data
since your outsourcing partner is likely to gain access to sensitive
information about your business
v It
is within the realm of possibility that effective control over the business
processes that you outsource may be lost.
v Your
outsourcing partner may not be able to maintain the standards you envisage for
your business.
v The
outsourcing partner may be providing such services to your competitors too and
it brings into your business a direct conflict of interest.
v If
the outsourcing partner abruptly stops the business, your dependability on him
gets you to a situation of ‘temporary setback’. This imbroglio can only be
solved by finding out a new partner which is both challenging and time
consuming.
SLOW DIAGNOSIS:
As human resource
outsourcing is in a nascent stage, our corporate and MNCs have just started
sensing their problems at least in certain industries. It cannot be ignored and
taken to be weak signal. In the last five years, 11% of the companies have done
away with their out sourcing schemes and reverted into traditional HR
procurement systems.
Pressure to enhance
outsourcing quality and to fall in line with competent outsourcing is on one
extreme and the excess fondness for comfort is on other. Now the question is
about the position of an average candidate in this vast divide. Their natural propensity
for comfort and demand of time are paradoxical. How far they will stay
unfaltered? When the going gets tough how much grit and guts they will show to
stay the course? How many of them will quit? What future is in store for the
quitters? The onus of answering all these tags lies with outsourcing.
SIDE EFFECTS:
When the organizations
concentrate on Access to skills and knowledge, Quality, and cost reduction, a
large group with moderate skills and potentials are ignored and getting into
hostile environment. Such issues are rampant in IT, P&M, Public services,
and to greater degree in private services. It is a matter of grave concern that
this situation creates the huge economic and social inequalities with the
attendant issues in the near future.
Another threat emanates
from HR segment. How will you plan HR activities? How will you set HR yardsticks?
This branch of management is getting tougher; each day passes-by due to the
reason that skills and potentials are transient phenomena with regard to demand
and supply.
More over corporate
heads and mentors show great concern over what is taught in the class rooms and
what is the need of the industry. Even the premier B’ schools and Tech’ schools
not an exception to it. The merits and demerits of human resources outsourcing
show that it is a double edged weapon on one side, you can capitalize on the
opportunities but on the other side, there is every possibility for an unprecedented
growth in future conflicts.
No doubt, world is
dynamic and changing rapidly. The traditional values are still valid. It has
been proved through the survival of some orthodox economies in the context of
global recession. Some experts view that human resource outsourcing as the
requirement of time but if we move by time alone, how do we ensure future of HR
force?
MYTHS AND FINDINGS:
It will not be out of
place for me to examine here challenging the environment in which the HR
professionals are working. When people are compelled to rate their operating
environment against few key factors like
strength of competition, pressure to enhance quality, a need to innovate,
pursuit of market growth and increasing competition in the market place. The
current operating environment is highly pressurized with the top three
pressures including the need to improve efficiency, pressure to enhance quality
and an increasing need to innovate. It has become a necessity to ensure the
safety of mediocre workforce in future with proper planning and vision.
Let’s dispel some still
popular myths regarding HRO. These include;
A. HRO
is a hard time solution.
B. It’s
a gap-plugging function.
C. It’s
a painful and time consuming process.
D. HRO
is not business focused.
TRADITION AND WORKLIFE:
Apart from all myths, the
oriental tradition especially that of Indians have a strong perception on work, work life, Quality Work Life, Work- Life
Balance and so on. It explains the work environment as the life domain of an
individual worker. It urges people
to ensure comfort, security and justice
in work environment. There arises contradiction between work values and
outsourcing.
STEPS TO SOLUTIONS:
Instead of searching
for a quick-fix solution, it is better is to attract the corporate environment
towards initiating steps to overcome expeditiously the consequences.
v First
of all there should be a classification of industries which are outsourcing centric
and not. The jobs also to be brought under vertical analysis and
classification.
v Second,
a ratio has to be fixed by corporate through an internal mechanism on each job
to distinguish part of outsourcing and staffing.
v Third,
balancing blend of outsourced and fixed employees on various rates and
standards of appraisal has to be ensured.
v Then,
effective influence has to be ensured to stabilize economic and social growth
through timely intervention and logical alteration rather than concentrating on
shorter and undue gains.
CONCLUSION:
Having deliberated upon
so contentious and relevant an issue I would like to sum up this short yet
discursive deliberation by leaving some part open. This is too subjective a
topic to be dealt with. Nature of such topic gets revealed to a person entirely
based on his paradigm and upbringing. However, it is my earnest urge to
corporate community to step into and do something effective and needful to
alleviate the hardship of this vexed problem so that a large chunk of our youth
find meaning for their life.
