Outsourcing May Reduce Unemployment

Outsourcing May Reduce Unemployment
"Outsourcing may be a solution for increasing employment"
Friday, January 23 2009, 19:30
Antique, Elly Setyo Rini
Construction workers (AP Photo/Andy Wong)
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VIVAnews - Indonesian Employers Association (Apindo) recommended that outsourcing could be a solution for handling the increasing number of unemployment in Indonesia.

"Outsourcing may be a solution for increasing employment," said Apindo Deputy Secretary General Iftida Yasar said on Friday, Jan 23.

According to Yasar, as long as it employers' rights are respected, any forms of outsourcing companies will save laid-off workers. "I understand that people look at outsourcing in a negative manner. It is said as resembling slavery," he said.

However, he said, if the term outsourcing can be resolved, then the business may be an alternative in handling unemployment.

There are two sorts of outsourcing: assigning workers in a company; and outsourcing processes business such as working on orders," said Yasar.

Apindo views outsourcing as a promising business taking into account it has contributed significantly. "In Philippines, outsourcing contributes to 70 percent of employment," Yasar said. China and India also apply such strategy.

In addition to the labor intensive works sector, according to Yasar, outsourcing business also absorbs countless workers. "Say, there is an order from the Netherlands, for instance. Then an employer would only need to provide a building and technology before recruiting specific employees," Yasar said.

For the time being, said Yasar, Indonesia is yet to be targeted by countries handing out orders to outsourcing companies. "Apindo is targeting that [Indonesia] may start the business by 2010," he said.

For the time being, said Yasar, Apindo is trying to rebuild the twisted perception on outsourcing through seminars and international meetings.

Translated by: Bonardo Maulana Wahono
• VIVAnews