Back-Office Outsourcing Attracts Government Units, Labor Unions Oppose

Article by Audrey Banares

It is known that outsourcing affects the local employees especially hose in US and UK where most companies are seeking outsourcing. Most people in those regions see outsourcing as the main cause as to why the unemployment rate goes up. This may be true in some cases, since companies take measures to lay off some of their employees especially when redundancy takes place. Usually, those in the back-office epartment and those conducting administrative tasks are the ones who experience this. In fact, there have been disagreements among companies, governments and labor unions in some areas across the globe because of actions being undertaken by companies. However, companies try their best to conduct necessary measures when dealing with this.

Recent news show that labor unions in the United Kingdom such as UNISON and UNITE are protesting the what seems to be a possible transfer of back-office processes of British local government units to India, the outsourcing destination heralded as number one by most industry professionals. Capita (LON:CPI), a provider of IT and call center services, is the company with whom the Birmingham City council has partnered with. It was mentioned in the article that Service Birmingham, a venture by the branch of the local government unit and Capita, claimed that no local employees in the city has lost their jobs. However, the main concern of labor unions in the United Kingdom is that even if only 50 job positions are being filled by Capita, other government units may also follow suit and companies as well. Despite the disagreements arising today, the local government units would not allow for their constituents to be on the disadvantageous side. In fact, the move was said to be driven by the government