Niyamath Parveez

It has been one of the most common announcements with regards to outsourcing but there is the feeling that perhaps the mantra of quality is starting to seep through. Companies and experts can say this until they are blue in the face but sometimes it takes governments to speak up and spread this message to the population. Some of the nations which are best known for providing outsourcing work are very loyal to their governments, which mean they are far more likely to listen to what they are told from their ruling bodies. If this improves the working of outsourcing around the world, then everyone can be thankful for government intervention when it comes to business. This is exactly what has happened in Singapore recently, with this nation being at the forefront of outsourcing and for being obedient to government’s teachings.
The Ministry of Manpower has made their feelings about outsourcing very public and if this can influence behavior, then the face of outsourcing in Singapore may change a great deal. The main factor that the government is now preaching is that firms should seek to choose contracts and tenders by the quality that is being offered as opposed to lowest price on offer. It is only natural for a firm to consider choosing the lowest priced option, after all, reducing the labor cost is one of their major aims and outsourcing is a tremendous way to achieve this. However, with some people, it is worrying that the reduction in the cost of labor will tend to result in poorer quality of product or service.
It makes sense that a product or service that is being produced for a lower price is going to be of a reduced quality, and there has to be a tradeoff between these areas in order to ensure that everyone remains happy. If the quality falls, it is likely that the demand for these products will fall. The current economic crisis is causing many consumers to re-consider their choices and they will demand a greater value for money with all of their purchases. As companies are striving to change their current behavior in order to get increased value, there has to be an expectation that the consumer is doing the exact same. However, the demands for a product or service between supplier and customer are very different which means there is likely to be a gap in the middle. This is just one of the reasons why the Ministry of Manpower is urging this focus on quality as opposed to the lowest price possible. Of course, the Ministry of Manpower is interested in having people working and ensuring a workforce is being fully utilized so they have an interest in stating a desire to have quality remaining high. If cost-cutting reduces the labor force working, then the Ministry of Manpower may be put under pressure to find work for more people, so maintaining a quality in work could be a great tactic for the Singapore government to ensure people remain in employment.