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19/03/2002
Outsourcing plays “integral part” in NI business
A new report from business advisory firm PricewaterhouseCoopers (PwC) has revealed that over half of local companies outsource basic services such as staff recruitment, IT support and workforce training.
According to the PwC research, which covered 297 Northern Ireland companies, 61 per cent of companies use outside agencies to provide cleaning services, while 59 per cent use external contractors for IT support services. Over 50 per cent of firms outsource staff recruitment, while 45 per cent contract-out their management recruitment.
Family-owned businesses in Northern Ireland were least likely to use outsourcing, yet the survey found that 45 per cent of such companies used agencies or advisors for management recruitment.
Paul Terrington, PwC’s Director of Human Resource Consulting, said that the results indicated a growing realisation by local companies of the “integral part” outsourcing plays in business operations. However, he warned that a proposed new EU directive could see restrictions imposed on the growing trend of contracting out key services. Explaining that, in some EU member states, employment agencies are either illegal or heavily regulated, Mr Terrington said he believed that attempts to extend this ruling to the UK could disadvantage local businesses.
He added: “The business community has accepted the Government’s use of the IR35 rule to stop individuals from setting up their own service companies to sell their skills to employers. However, the legitimate use of agencies and specialist outsourcing contractors is demonstrably boosting the competitiveness of UK businesses.”
(CL)
According to the PwC research, which covered 297 Northern Ireland companies, 61 per cent of companies use outside agencies to provide cleaning services, while 59 per cent use external contractors for IT support services. Over 50 per cent of firms outsource staff recruitment, while 45 per cent contract-out their management recruitment.
Family-owned businesses in Northern Ireland were least likely to use outsourcing, yet the survey found that 45 per cent of such companies used agencies or advisors for management recruitment.
Paul Terrington, PwC’s Director of Human Resource Consulting, said that the results indicated a growing realisation by local companies of the “integral part” outsourcing plays in business operations. However, he warned that a proposed new EU directive could see restrictions imposed on the growing trend of contracting out key services. Explaining that, in some EU member states, employment agencies are either illegal or heavily regulated, Mr Terrington said he believed that attempts to extend this ruling to the UK could disadvantage local businesses.
He added: “The business community has accepted the Government’s use of the IR35 rule to stop individuals from setting up their own service companies to sell their skills to employers. However, the legitimate use of agencies and specialist outsourcing contractors is demonstrably boosting the competitiveness of UK businesses.”
(CL)
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Northern Ireland WeatherThis Evening and Tonight:Rain clearing away east by early evening with some clear spells but a few showers likely to affect the North coast and other areas towards dawn, remaining breezy and mild overnight. Minimum temperature 9 °C.
