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STANDARD OPERATING PROCEDURE (SOP) FOR OUTSOURING

OF MANPOWER

PURPOSE

Outsourcing refers to utilizing resources on payment basis, of another organization


to secure services and products, for which one would otherwise employ one's own
resources, including manpower. The aim of outsourcing is to optimize expenditure
both on manpower and logistics. It aims at enhancing operational preparedness
without compromising security by entrusting functions to specialists and service
providers. The purpose of this SOP is to lay down a proper process for outsourcing of
manpower.

SCOPE:

 Define contracting strategy and objectives.

 Development of future state contracting model

 Tender documentation Development.

 Procurement process and Selection

 Implementation.

 Contract Management.

 Review contract objective and Performance.

OBJECTIVES:

 To obtain Successful outsourcing, effective implementation and management


throughout the Contracting Life cycle.
 Defining and developing your contracting strategy, which allows you to run a
successful and targeted tender process.

 Once you have run the procurement process and have selected your supplier,
there should be effective management of the contract.

PROCEDURES:

DEFINE CONTRACTING STARTERGY AND OBJECTIVES

 First the organization and management needs to define the need for
outsourcing.

 Is it necessary to outsource or hire own employees and which will be more


beneficial in the long run.

 The negative and the positive impacts on the organization due to outsourcing
have to be thoroughly scrutinized by the authorities responsible.

CONTRACTING MODEL

 There should be development of a contracting model, with precise objectives of


the organization.

 The contracting model will be applicable for all future outsourcing services.

 The Organization must make sure that the contracting model is beneficial to
both the parties involved in the the outsourcing process.

TENDER DOCUMENTATION DEVELOPMENT

 A new tender has to be floated for the outsourcing needs and requirements.
 Keeping in mind the future needs of the company and the requirement of man
power from all the departments the tender should be developed.

 The tender documents must be developed strategically and with guidelines from
the organization head.

 The final approving authority of the tendering documents will be the


organization head or other representative authorities.

PROCUREMENT PROCESS AND SELECTION

 The procurement of the outsourcing services will be done by the procurement


department as per the needs put forward by the HR department.

 The procurement team has to optimize the supplier selection for the
outsourcing services.

 The requirements have to be made well in advance in order to optimize the


entire process and gain maximum benefits.

 The HR department must conduct interviews to select the proper competent


employees which will be working for the betterment of the organization.

 The final outsourcing decisions will be with the higher authorities and
management team.

IMPLEMENTATION

 Once the manpower has been outsourced, the next step is to utilize their
services to the full and implement their respective departments.

 The HR team along with the help of the management will decide the new roles
and responsibilities of the outsourced manpower and help in smooth transition
of the job duties.
CONTRACT MANAGEMENT

 The success of the contract will largely be determined by its management.

 Appropriate monitoring and measurement processes need to be in place to


know that the contracts are delivering the service and outcomes desired.

 Contract compliance:

Contract Compliance is a set of contract review tools that determine if the contract is
complying. It produces tangible information that will be used for assurance and
improvement for both parties.

 Contract performance:

Contract performance is a tool kit of measurement and survey products and services
that identify levels of performance and customer satisfaction. It also assists in
contract re-tendering decisions.

 Contract Improvement:

Contract Improvement is a set of facilitation practices aimed at better working


relationships. Achieve better outcomes and resolve issues or disputes between the
contracting parties. Jointly identify process and operating improvements.