Workshop on Latest Trends in Outsourcing and Innovation .


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2. Framework of Presentation. BackgroundLabour misuse issueOutsourcing effectivenessGood outsourcing practicesWay forward. 4. Outsourcing Policy. Utilize the private division to accomplish esteem for cash in conveyance of open administrations where conceivable. 5. Worries on Outsourcing. Wide media scope of temporary worker malpracticesCommon worries on contract planning and managementStaffing issuesUnion conc
Transcripts
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Workshop on Latest Trends in Outsourcing and Innovation Outsourcing Review in Major Procuring Departments Ms Kitty Choi Head, Efficiency Unit 9 August 2006

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Outline of Presentation Background Labor misuse issue Outsourcing viability Good outsourcing rehearses Way forward

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Outsourcing Policy Use the private segment to accomplish an incentive for cash in conveyance of open administrations where conceivable

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Concerns on Outsourcing Wide media scope of temporary worker misbehaviors Common worries on contract planning and administration Staffing issues Union concerns Impact on foundation and advancement Contract administration abilities and endeavors

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The Outsourcing Review Main review target: to enhance outsourcing adequacy To address issues and concerns confronted by divisions To create arrangements/proposals for partaking offices To draw more extensive lessons for scattering To build up target information on outsourcing To help discover down to earth and savvy method for implementing control over abuse of non-gifted specialists

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The Outsourcing Review Participating offices took up around 21% of aggregate estimation of non-works contracts in 2004 Outsourced administrations concentrated Cleansing administrations Security administrations Horticultural support administrations Property administration administrations Sports focus administration administrations

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2001 20 0 2 2004 200 5 200 6 all inclusive Measures FC No. 3/2001 Marking plan to assess proposed wage s and working hours FC No. 3/2004 Mandatory prerequisites on delicate appraisal Demerit Point System Conviction records Standard Employment Contract FC No. 5/2004 Mandatory wage level FC No. 4/2006 Tightened compulsory prerequisites on delicate evaluation

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Common Departmental Measures Procuring offices Posting notice on business conditions Interviewing specialists Checking finance records Deducting installment for wage setback Setting up protest/enquiry hotlines Central examination group Enforcement offices Stepped up authorization by LD, ICAC, MPFA, and so on

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Extent of Problem Departments under review

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Extent of Problem Convicted summons by Labor Department

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Extent of Problem far reaching Demerit point insights (for post-DPS contracts just) DPS actualized for more than 2 years About 3,600 non-works contracts in 2004 17 negative mark focuses granted up until now (counting 5 cases under interest) 1 organization suspended from offering in the following 5 years

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EU\'s Observations – Extent of Problem appears to be under control Current measures appear to work The media, staff union and open may think in an unexpected way

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EU\'s Observations – Effectiveness of Measures Existing measures are for the most part powerful with the exception of finance check Time expending however not exceptionally compelling May spot specialized mistakes/anomalies Wilful contractual workers far-fetched to submit implicating records Cannot identify wage discount If finance checks are to be proceeded with Adopt a hazard administration way to deal with lead test checks Don\'t over-do it

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EU\'s Observations – Impact of Measures On specialists – better working conditions Standard Employment Contract + Mandatory wage level Generally higher wages Vary among divisions From no noteworthy change to +33% in wages

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EU\'s Observations – Impact of Measures On offices Generally raised contract cost +17% for one dept.

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Good Labor Protection Practices Identified Centralize administration data Better comprehension of degree of issue Help define suitable measures Timely mindfulness, fast reaction, directorate guide Well-organized contract and strong delicate assessment Attract competent givers Help select fair and legitimate temporary workers Greatly decrease resulting checking and implementation exertion

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Good Labor Protection Practices Identified Raising mindfulness on work conditions Posting sees on business conditions in working environment Briefing contractual workers and in-house staff Partnership with requirement organizations Early discovery of tricky cases Timely counsel on proof social event Enable conviction of corrupt temporary workers

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Suggested Additional Practices Responsive grumbling framework Proactive examination of objection cases Build up trust in division\'s grievance taking care of framework Wage count Online PC program for wage computation Prevent superfluous dissensions on wage abuse Risk administration Measures/exertion comparable with the degree of issue Focus on rotten ones

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Outsourcing Achievements – FEHD Street purifying administrations Long outsourcing history No formal instrument to gage open perspectives however Past overview Staff sentiment Substantial cost sparing accomplished Higher cleanliness level accomplished

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Estate administration and upkeep administrations Outsourcing Achievements – HD Marked change in administration quality Increasing pattern of inhabitant fulfillment level Drove up administration standard of in-house administrations

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Estate administration and support administrations Outsourcing Achievements – HD Cost sparing Substantial cost sparing accomplished

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Outsourcing Achievements – GPA Property administration administrations Reformed outsourcing model in 2001-2002 Steady increment in consumer loyalty level Achieved cost investment funds

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Cleansing, security and plant support administrations Outsourcing Achievements – LCSD Sports focus administration benefits Long history of outsourcing Significant cost sparing accomplished Outsourced dynamically since 2000 Service quality to a great extent kept up Substantial cost sparing accomplished

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Conclusion Clear confirmation of enhanced nature of administration and cost reserve funds Competition from contractual workers has driven up the administration standard of staying in-house administrations

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EU\'s Observation - Outsourcing Effectiveness General absence of archived information on outsourcing viability Business case documentation Cost figures prior and then afterward outsourcing Service conveyance cost Contract administration cost Service levels previously, then after the fact outsourcing User fulfillment levels and perspectives

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Good Outsourcing Practices Contract readiness Contract advancement Service particulars Contract organizing Commercial courses of action Contract administration Relationship administration Performance observing Review others Tendering & choice Tender assessment

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Contract planning Contract advancement Service details Contract organizing Commercial game plans Contract Development Centralized contract improvement A focal unit to create standard contract terms and conditions Benefits Facilitate advancement of outsourcing mastery More viable and productive in get ready, handling and refining tenders Maintain a predictable approach

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Contract planning Contract advancement Service determinations Contract organizing Commercial game plans Service Specifications Outcome-based particulars More result center to empower development and adaptability Some information particulars inescapable Department A receives an execution based approach and accomplishes the accompanying advantages: More client centered Both sides center around guaranteeing conveyance of value administrations Flexible sending of assets by contractual workers Reduced contract administration exertion

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Contract planning Contract improvement Service details Contract organizing Commercial game plans Service Specifications Appropriate administration levels Avoid "gold-plated" benefit level particulars Nonetheless, look for persistent change Avoid under determinations

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Contract planning Contract improvement Service determinations Contract organizing Commercial game plans Contract Structuring Bundle little contracts and related administrations Benefits Enjoy cooperative energies and economies of scale ��  cost funds, enhanced administration Reduced offering and contract administration exertion Dept. Countless contracts Security contracts Property mgt. contracts 4 property mgt. contracts with more far reaching administrations Estate mgt. furthermore, upkeep contracts covering purifying, security, bleeding edge tenure mgt. furthermore, upkeep administrations Dept. B Cleansing contracts Security contracts

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Contract readiness Contract advancement Service details Contract organizing Commercial courses of action Commercial Arrangements Encourage great execution Link installment with execution level (Department A) Min. 95% installment 96% installment for 82% execution level 97% installment for 84% execution level ... 100% installment for >= 90% execution level Extend contracts of good entertainers (Department B) Invite contract reestablishment for execution surpassing pre-set level Other offices may consider granting a more drawn out term contract with break clause(s) in the middle of on accomplishment of execution focuses for continuation of administrations

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Contract readiness Contract advancement Service determinations Contract organizing Commercial courses of action Commercial Arrangements Optimal hazard assignment Allocate hazard to the gathering best ready to oversee it Private segment best at overseeing operational and life-cycle dangers Mitigating value chance in longer term contracts 2 offices have contracts with 3-year term + expansion alternative Adjust contract cost every year as indicated by CCPI development Adjust conferred wage level yearly by CCPI/NWI development Benefits Reduce value hazard to both divisions and contractual workers ��  more reasonable offer cost

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Tendering & choice Tender assessment Tender Evaluation Take due thought of execution track records Balance specialized capacity and value assessment Provide adequate data to givers Enhance straightforwardness in delicate assessment

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Contract administration Relationship administration Performance observing R

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