Why outsource?
Today most companies strive at cost cutting in their businesses to maximize their revenue whilst minimizing their expenditure. They prefer to outsource non-core staff to save time, money, manpower and Infrastructure. Outsourcing specialized services has been found to be a most acceptable and practical solution. By outsourcing staff whose roles do not add value to its core business except that they add to the payroll, taxes, insurances, indirect costs such as tools, equipment, training and management, organizations could concentrate on their core competencies. Outsourcing also provides scalability by allowing companies to adjust their staff levels and avoid fixed costs.
Outsourcing has shown huge growth in businesses since core functions are carried out efficiently by in-house staff leaving non -core functions to the outsourcing partner.
Categories for which outsourced services provided by MPM
Our client would divest an entire, specific non-core function to MPM after which MPM would take responsibility for compliance, freeing the client to concentrate on the organization's core competencies. Positions under non core service may be any of the following in your organization: all factory workers, the janitorial service, the cleaner workforce, the quota of drivers, laborers, clerical staff, technicians, electricians, plumbers, building maintenance supervisors and other technical and specialist positions at these levels. Client may outsource the entire building maintenance function of large offices, factories, apartment complexes after which accountability and responsibility for these functions would rest entirely on the outsourcing partner (MPM). The chant may propose any of the company's non-core functions and request for a proposal for outsourced services.
Methodology
MPM would absorb the client's existing non core service employees into its
Payroll. MPM would take on the role of legal employer. Thereafter the following responsibilities would devolve upon MPM on behalf of the client: Preparation of salaries I preparation of statutory payments such as EPF, ETF, PAYE and allowances as indicated by client / disbursement of salaries and allowances / disbursement of statutory payments. Once absorbed as legal employer, MPM will replace staff in any of the accepted categories in the event of loss of Staff for any reason so as to continue uninterrupted quality service.MPM would provide a monthly statement of transactions and receipts.
Cost savings assured to client: reduction of head count, no administrative overheads, no administrative activity in relation to payroll, no legal implications with regard to employment or disciplinary issues, no onion or labor issues, no redundant or ineffective staff, no Interruptions due to non attendance, the sly Issue of offer letters and contract renewals. All these would be contracted for by MPM and would remain the responsibility of MPM.
Legally binding contract
MPM and the client would enter into a legally binding Agreement for Outsourced Janitorial, Building Cleaning & Maintenance or other service required by client and provided by MPM in which client's expectations would be bid out and agreed upon by MPM under a legally binding contract.
Responsibility of client
Client would provide all necessary information to supplier (outsourcing company). Vital information would encompass provision of a comprehensive monthly staff status report detailing listed staff, dates of employment and contract end dates, salaries, allowances and benefits, employees bank account details if relevant, attendance and all information called for by MPM to properly profess the outsourced payroll. Payments to outsourced staff would be within a speckled time after receipt of salaries from client (2 working days).
Advantages to client
Financial value Redesigning the operation and achieving a cost saving
by lowering the overhead costs of services to the business.
Operational value improving efficiency, accountability, quality, productivity, risk management through contracting out the service with a new service level agreement.
Strategic value Redistributing time and resources to core business activities that would directly impact your shareholders value and market position.
