Many large companies today rely on outsourcing work systems to support their operations. This system not only provides cost efficiency but also allows companies to focus more on their core activities. However, how does the outsourcing work system actually function, and what steps should a company take to manage it effectively? Find out the answers below!
Understanding Outsourcing Work Systems
An outsourcing work system is a business practice where a company delegates part or all of its tasks to a third party to manage and execute specific duties. Companies typically choose outsourcing to improve efficiency and gain specialized expertise rather than handling these tasks internally.
According to Article 64 of the Manpower Law, companies can delegate part of their work to another company through either a subcontracting agreement or labor supply services.
Employees recruited by an outsourcing company will work for the client company under a contract system, which can be either a Fixed-Term Employment Agreement (PKWT) or an Indefinite-Term Employment Agreement (PKWTT).
Read : 7 Benefits of Outsourcing for Businesses
1. Outsourced Employee Recruitment Process
The recruitment of outsourced employees is handled by the outsourcing company itself, which then assigns these workers to the client company. This recruitment process is generally more flexible, as companies only need to agree on the specific tasks and contract duration.
2. Managing Outsourced Employees
Once placed, the daily management of outsourced employees is usually handled by the client company. However, matters related to employee rights and welfare remain the responsibility of the outsourcing provider.
3. Types of Outsourcing Contracts
Employment contracts in the outsourcing system are divided into two types: Fixed-Term Employment Agreement (PKWT) and Indefinite-Term Employment Agreement (PKWTT). PKWT (Fixed-Term Contract) has a specific duration and is typically used for temporary or project-based work, whereas PKWTT (Indefinite-Term Contract) More flexible, with no set time limit, and is often used for long-term employment. The choice of contract depends on the type of work and the agreement between the company and the service provider.
Types of Jobs Suitable for Outsourcing
According to Article 65, Paragraph (2) of Law No. 13 of 2003 on Manpower, certain types of jobs are suitable for outsourcing. These jobs must meet specific requirements to be eligible for outsourcing.
Some of the key criteria for outsourcing jobs include:
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Tasks that are separate from the company's core business activities.
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Work that can be performed with direct or indirect instructions from the company.
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Jobs that serve as supporting activities and do not disrupt the company’s main production process.
Thus, only non-core activities that do not directly affect the company's main operations can be outsourced.
Legal Basis and Regulations on Outsourcing
Outsourcing in Indonesia is regulated by various labor laws. Previously, outsourcing was governed by Articles 64-66 of Law No. 13 of 2003, but this regulation has been revised under the Job Creation Law (UU Cipta Kerja). According to Article 64 of the Job Creation Law, companies may delegate part of their work to another company under a written outsourcing agreement.
It is important to note that outsourcing companies are required to comply with worker protection standards, including employee rights, welfare, and wages in accordance with applicable regulations. Additionally, outsourcing companies must obtain business licenses and legal status to operate.
Key Legal Provisions in the Job Creation Law:
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The employment relationship between the outsourcing provider and its employees must be based on a written agreement.
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The outsourcing company is responsible for ensuring workers' rights and welfare in compliance with labor regulations.
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If there is a change in the outsourcing provider, workers’ rights must remain protected.
Read : Enhancing Outsourcing Services with Yukiyasu Aoyama's Visit to PT Shield On Service Tbk (SOS)
How to Manage Outsourcing Effectively
Managing an outsourcing system effectively requires strategic planning to maximize its benefits. Below are some important steps to ensure successful outsourcing management:
1. Choose the Right Outsourcing Provider
Ensure the outsourcing provider has relevant experience and expertise. Conduct thorough research on their reputation, skills, and capability to handle the assigned tasks.
2. Set Clear Objectives
Before entering into an outsourcing agreement, clearly define the objectives—whether it's cost reduction, efficiency improvement, or fulfilling a specific operational need. Clear goals help evaluate performance later on.
3. Maintain Open and Transparent Communication
Good communication is key in any outsourcing partnership. Establish clear communication channels between your company and the outsourcing provider to address any issues quickly and ensure smooth operations.
4. Conduct Regular Monitoring and Evaluation
Regularly assessing the performance of outsourcing providers is crucial to maintaining service quality. Set key performance indicators (KPIs) to measure results and identify areas for improvement.
Outsourcing: A Strategic Solution for Business Efficiency. However, businesses must ensure that their outsourcing implementation aligns with existing legal regulations and best practices.
If you are looking to improve your company’s efficiency through outsourcing, make sure to choose a professional and reliable outsourcing service provider.
Optimize Your Business Operations with SOS’s Professional Outsourcing Services
Looking to improve your business efficiency with skilled workforce solutions? SOS, as a professional labor provider, is ready to support your company with top-tier outsourcing services. With extensive experience in outsourcing, SOS offers a variety of services, including Security Services, Parking Management, Cleaning Services, Labor Supply, dan Pest Management.
Benefits of SOS Services for Your Company:
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Reduced Operational Costs – Save on labor, training, and facility expenses, as you only pay for the services you use.
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Fokus pada Bisnis Utama – Dengan outsourcing, perusahaan dapat lebih fokus pada pengembangan bisnis utama tanpa terganggu oleh pekerjaan non-inti.
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Specialized Expertise – Gain access to professionals with specialized skills without the need for in-house recruitment and training.
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Flexibility – SOS provides scalable and customizable services tailored to your business needs.
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Improved Quality and Efficiency – Enhance operational efficiency with skilled and well-trained personnel.
Don’t let non-core tasks disrupt your company’s operations. Entrust your workforce needs to SOS, your trusted partner in integrated outsourcing services. Contact SOS now and discover the best solutions for your business!
