Marshal and Gordon Case Essay

Outsourcing is the makeing stunned(p) of an transcriptions business activities (functions and processes) to an outside service provider where the provider is responsible to carry out the activity that was currently, or could be, undertaken by the organization. Earlier outsourcing was usually carried out for organizations non-core activities to save money but now outsourcing is omnipresent. Firms are outsourcing a wide range of activities ranging from look into and development to marketing, from production to assembly, distribution to after sales service.Today, even activities bid security and public transaction are outsourced. Predominantly, there are cardinal kind of outsourcingWith manpower where the service providers employees constitute inside the exposit of the organization. For example, company X has outsourced its security department to company ABC, hence ABCs employees operate at the location of company X. Without manpower the service providers employees do not diddle inside the organization premises. For example, if company X is an electronics company and has outsourced the after sales services of its products then the serviceThe world longest rub, which lasted nearly a decade has come to end by hospitality workers at the Congress Plaza Hotel in Chicago on the night of 29th may 2013. The strike was started on June 15, 2003 and the striking workers had long called for wage and benefit increases and job security.IRound The Worldproviders employees work need not work at the parent organizations location but go away extend services at the customers location.Why Outsourcing Save Costs To save the cost associated with defined benefits for permanent employees in labor-union contracts and as guaranteed by various labour laws in thecountry like change magnitude Effectiveness Companies by outsourcing non-core activities plenty focus their resources on the management of the core activities leading to raise organization effectiveness Access to w orld class experts Outsourcing to specialized companies gives organization access to experts and the latest technologies for hold in time frame for specific project cogitate work leading to improved quality Increased flexibility Outsourcing business functions to external service providers, the organization doesnt need to maintain fixed assets and drop on infrastructure. This gives the organization flexibility to meet changing business needs and respond to the dynamic environment. Laws related to outsourcing Outsourcing, as already discussed, is of both types Outsourcing with manpower, and outsourcing without manpower.Outsourcing without manpowerWhen outsourcing is done without manpower, it is essentially a contract between two parties and and the Indian Contract Act, 1872 (hereinafter referred to as the ICA) becomes applicable. Both the parties are bound by the ICA and the terms of the contract agreed upon by them.Outsourcing with manpowerOutsourcing with manpower is also essen tially a contract between two parties and hence ICA becomes applicable. However, because the activities are carried out on the premises of the outsourcing party, the Contract Labour (Regulation and Abolition) Act, 1970 (hereinafter referred to as CLRA) also becomes applicable, provided twenty or more workmen are employed as contract labour in the establishment.Thus in a nutshell, we can say that ICA becomes applicable in all deterrent examples of outsourcing, whereas, CLRA becomes applicable only in case of outsourcing with manpower, provided that the establishment (outsourcing party) employs or had employed in the preceding twelve months, twenty or more workmen ascontract labour.Relation between players In case of outsourcing without manpower, the only relation providing the service is the second party. The outsourcing judicature has no relation with the employees of the second party.However, in cases of outsourcing with manpower where CLRA becomes applicable, there are three pla yers, vis--vis, Principle Employer, contractor and Contract Labour. The outsourcing organisation is the Principal Employer, the organization providing the service is the Contractor, while the employees of the Contractor working on the premises of the Principal Employer are the Contract Labours. The Contractor is responsible for the health, welfare and payment of wages of the Contract Labour.It is only when the contractor fails to meet those responsibilities does the Principal Employer become liable. However, the Principal Employer, as per section 20 and 21 of CLRA, can recover the costs incurred for meeting such liability from the Contractor.Employer-Employee Relationship Looking at the present scenario, with outsourcing activities change magnitude exponentially, it can be said that the employer employee relationship is becoming more of a myth. The contract labour, who carry out the activities in the premises of the Principal Employer, are not the employees of the Principal Employ er. The Principal Employer does not hire, fire, or defend the contract labour. Neither is it subscribe toly responsible for their health, welfare and wages. Thus, we can say that there is no direct relationship between Principal Employer and Contract Labour.References1. https//en.wikipedia.org/wiki/Outsourcing2. Padhi, P.K., Labour and Industrial Laws, Eastern Econo- Pratham, an NGO based out of Mumbai, working for child development announced that it had reported to the police 1,817 cases of children sweating it out in intensive activity in the Mumbai in June, that it spotted during a two-month study. Clearly shows that even the fundamental rights are comely on paper.