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  • Outsourcing a department

    It is common in the Philippine companies to oursource the security department and the janitorial as well. For economical reasons, it is more expensive to train your own security guards. Considering that security agencies are fit and ready with the service for their guards have undergone ample training and they have the necessary permits for the guns, big companies outsource the guard position from those security agencies. Likewise with janitorial services, big companies don't bother to hire and train janitors anymore in lieu of those service agencies.

  • #2
    Re: Outsourcing a department

    There is a huge, secret, multimillion dollar local business here that handles all of the late-night washing and caretaking for businesses after hours. They take power washers to the ground once or twice a week, get rid of stuff like gum, spray for bugs, etc. They wrap it all up into one and run routes after around 10:30 pm until 4 or 5 am, and nobody notices. Massive cash flow.

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    • #3
      Re: Outsourcing a department

      I think this is the better way to go about it considering I doubt you'd pay that much less if your trained your own and the benefits you get from doing so aren't that huge either if there is any. Our gated community employs multiple security persons and I am much more comfortable with that knowing they got proper training and that there is someone who can be held responsible for anything that goes wrong. For maintenance I think the heads are in house but I think the lower ranks are also employed from an outsourced company.

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      • #4
        Re: Outsourcing a department

        Originally posted by TheFunneler View Post
        There is a huge, secret, multimillion dollar local business here that handles all of the late-night washing and caretaking for businesses after hours. They take power washers to the ground once or twice a week, get rid of stuff like gum, spray for bugs, etc. They wrap it all up into one and run routes after around 10:30 pm until 4 or 5 am, and nobody notices. Massive cash flow.
        We also have that here. Most of the janitorial services work on nights and their workforce in the morning are just about 10%. The starting work hours is after 7m and ends before 6am when the morning shift starts. That's usually for the big companies that owns the building. Even the street sweepers are in full force during the night shift when the traffic is light. I agree that those night shift business is big money that we do not notice simply because they are composed of lowly workers. That's also true with security agencies.

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        • #5
          Re: Outsourcing a department

          Originally posted by TheFunneler View Post
          There is a huge, secret, multimillion dollar local business here that handles all of the late-night washing and caretaking for businesses after hours. They take power washers to the ground once or twice a week, get rid of stuff like gum, spray for bugs, etc. They wrap it all up into one and run routes after around 10:30 pm until 4 or 5 am, and nobody notices. Massive cash flow.
          Wow that sounds so cool. I think I'd like to run a business like that because I like staying up and I like how quiet the city gets past midnight. The only thing I'd worry about is possible crime but thankfully these days I don't really hear much of it in my area.

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          • #6
            Re: Outsourcing a department

            Most department that are outsourced are in the lower echelon of the company like maintenance and janitorial services, messengerial, security guards, etc. In the olden days, the IT department is up for outsourcing because the company buys a computer but does not have programmers and even operators. Those were the days of the mainframe computers. It is not very popular at that time but so many freelance companies provide services in that area. And when the micro computers came about, those freelance companies became IT schools.

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            • #7
              Re: Outsourcing a department

              Yes, we outsource security and cleaning to outside firms. It makes sense for us to do this, because not only does it mean that we have a better ability to get the staffing levels right, but it also means that we don't have to worry about training the staff in such a large number of areas - because obviously the companies in question will provide all of the training necessary for their staff. This means that we can simply hire the company, knowing that they are going to provide the service that we need at a price that makes strong financial sense for the company in the long term.

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              • #8
                Re: Outsourcing a department

                One problem in the outsourcing of the maintenance department is the trust. There were instances when the night cleaners were suspected of stealing some things of the employees since only the guard on duty was present when the cleaners are working. What most companies do is to post a supervisor for the outsourced cleaners. The supervisor is a regular employee and not part of the outsourcing company. That partially solved the problem.

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                • #9
                  Re: Outsourcing a department

                  Originally posted by GemmaRowlands View Post
                  Yes, we outsource security and cleaning to outside firms. It makes sense for us to do this, because not only does it mean that we have a better ability to get the staffing levels right, but it also means that we don't have to worry about training the staff in such a large number of areas - because obviously the companies in question will provide all of the training necessary for their staff. This means that we can simply hire the company, knowing that they are going to provide the service that we need at a price that makes strong financial sense for the company in the long term.
                  I think this is the most practical way of going about it since the company should be focused on doing its own function and having to train security and maintenance would only distract from the main goal and purpose. I think having these departments be trained in house is only advisable when the company is too big that it would be too expensive or impractical to outsource or if there is a necessity for extra security wherein they have less luxury in trusting outside employees.

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                  • #10
                    Re: Outsourcing a department

                    It's true that janitorial and security services in the Philippines are handled by agencies or manpower companies. Although I understand that outsourcing these non-frontline functions can save companies from financial costs incurred through time-consuming hiring and training processes, it's just sad that many security guards and maintenance workers aren't paid their due. Agencies extract a hefty placement fee from their salaries. Worse, some companies pay below the minimum wage and do not provide the mandatory government benefits. I just wish the government would regulate these agencies so that they do not exploit their staff to serve their own ends.

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                    • #11
                      Re: Outsourcing a department

                      It is election season - the Philippine presidential election is on May 9. Obviously, the campaign would promise the voters even the sun and the moon. All 5 presidential candidates are talking about the issue of outsourcing agencies which prevents a worker to be hired permanently. According to the labor law, once an employee stays with the company for more than 5 months then he should be hired permanently. But the outsourcing agencies have a way of evading that issue. Now the promise of the presidential candidates is to remove that outsourcing agencies for positions that are regular like security guard and janitorial services. Those agencies would only be valid for emergency positions and other temporary functions.

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                      • #12
                        Re: Outsourcing a department

                        @corzhen
                        I believe they are referring to direct operation employee, it is perfectly fine to outsource janitorial, security staff, it is not the primary business of a company. they
                        are referring to sales ladies, warehouseman, truck driver (company own fleet), Operation staff, including those who are directly involve in the business. Janitorial and Security Personnel are not a company's main line of business if they is into trading, manufacturing, etc...

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                        • #13
                          Re: Outsourcing a department

                          We just had the presidential elections last Monday and the unofficial winner is Rody Duterte who promised to do away with that contractual type of employment. That means the outsourcing agencies who supply temporary employment will have a problem in justifying their purpose. The contractual type is hiring a worker legally for 5 months only. In excess of 5 months of work, the worker is automatically considered permanently hired. So the scheme of outsourcing companies is to supply big companies with contractual workers and replace those workers after 5 months to avoid the automatic permanent status.

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