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Sunday, 16 March 2014

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EFC workshop on outsourcing

The EFC held a half-day workshop on Outsourcing - Issues and Challenges recently. Over 50 people from various national and multinational industries were present.

The workshop looked at what outsourcing was and why it was important for businesses.

It gave participants examples of outsourcing arrangements and explained the difference between outsourcing, sub-contracting and the hiring of labour through a contractor - all common practices that businesses adopt.

Most importantly the workshop looked at legal safeguards that companies could adopt, to ensure that their working arrangements were compliant with labour laws, and how to minimise risks that go with it.

EFC Director General Ravi Peiris said, "The term 'Outsourcing' has many ramifications in Sri Lanka.

"It is often used to mean something else. The differences between outsourcing, sub-contracting and contract labour are very subtle."

"Its legal implications are also different. We are no longer in an era where work needs to be done within an employment relationship," he said.

Sri Lanka is well known as the outsourcing country of choice for many overseas companies. Cost effective labour, deeply entrenched history, and favourable time differences, make it a top favourite with many Western countries looking for opportunities to outsource their business processes.

Nearly 400 delegates were present at EFC's annual symposium on 'Working Out of the Box: New Work Practices' last year.

Group General Manager of HR, Ceylon Biscuits Limited, Sajith Govinda Wickramaarachchi, said, "It was a good eye opener."

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