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October 28, 2005

Outsourcing in Russia: A growing phenomenon

Outsourcing, which has become a global phenomenon with more countries opting to delegate their non-core functions to an outside company, is yet to catch on in Russia. The labor force in Russia is circumspect about outsourcing and generally believes that jobs in outsourced projects are temporary. This has made it difficult for recruiters to attract enough skilled labor for outsourced projects.

Recruiters are trying to convince workers that the working conditions for outsourcing staff are the same as other normal employees. In the case of Motorola, the company transfers workers to a permanent position on its company books as soon as there is any opening. The St. Petersburg Times reports:

Unclear labor books or work records that list a frequent change of employer can put a potential candidate at risk of being seen as unstable. Meanwhile, the compensation packages of outsourcing staff sometimes lacks medical insurance, among other perks added to the wage.   

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