What Is Outsourcing ?
Bisnis.com, JAKARTA – Understanding what outsourcing is is very important for job seekers. From the company's perspective, outsourcing is a practice frequently used to improve operational efficiency. Simply put, outsourcing can be defined as a mechanism for tasks that are not directly related to the company's core business, where these tasks are transferred to another company or party. Outsourcing employees are not part of the user company, and thus outsourcing jobs do not have career advancement opportunities. This has led to many perceptions that outsourcing is a practice detrimental to workers.
1. Outsourcing Regulations
Outsourcing regulations are outlined in Law No. 13 of 2023 on Employment. Specifically, outsourcing is regulated starting from Article 64 and onwards. The article that regulates outsourcing reads: "A company may transfer part of the work implementation to another company through a written contract for job contracting or labor service provision." Detailed regulations on outsourcing can be found in the Decree of the Minister of Manpower and Transmigration No. KEP.220/MEN/2007 concerning the Conditions for Transferring Part of Work Implementation to Other Companies. In practice, outsourcing typically involves at least three parties: the outsourcing service provider company, also known as the vendor, the user company, and the workers themselves.
Outsourcing regulations are outlined in Law No. 13 of 2023 on Employment. Specifically, outsourcing is regulated starting from Article 64 and onwards. The article that regulates outsourcing reads: "A company may transfer part of the work implementation to another company through a written contract for job contracting or labor service provision." Detailed regulations on outsourcing can be found in the Decree of the Minister of Manpower and Transmigration No. KEP.220/MEN/2007 concerning the Conditions for Transferring Part of Work Implementation to Other Companies. In practice, outsourcing typically involves at least three parties: the outsourcing service provider company, also known as the vendor, the user company, and the workers themselves.
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This article has been published on Bisnis.com with the title "What is Outsourcing? Here are the Rules, Examples, and Its Advantages and Disadvantages." Click here for more details: https://ekonomi.bisnis.com/read/20240810/9/1783811/apa-itu-outsourcing-ini-aturan-contoh-serta-kelebihan-dan-kekurangannya?utm_source=desktop&utm_medium=search.
Author: Thomas Mola - Bisnis.com
