| Summary: | PT XYZ is one of mid-sized consulting companies in the field of Public Relation
operating in Jakarta. To face tight competition, fluctuative business world,
including to achieve cost eficiency and effectiveness, PT XYZ decides to
outsource four of it�s operational activities. The activities outsourced include
cleaning service, accountant and tax consultant, information technology, and
media monitoring service.
The objective of this thesis is to acknowledge the effectiveness of the outsourcing
policy implemented by PT XYZ measured using three main reasons for
outsourcing activity, operational risks transfer, operational cost reduction, and
business focus improvement.
Based on the evaluation, the author found that in PT XYZ, the operational risks
transfer are made up of general risks transfer and specific risks transfer. The
transfer of operational risks in general include selection and recruitement process
of prospective employees, training of new employees, annualy changing
minimum wage level of DKI Jakarta province and risks transfer of fluctuative
currencies if PT XYZ is to invest on manchineries. Whereas the operational risks
transfer in specific, basically deals in the agreement between PT XYZ and it�s
outsourcing providers.
For cost reduction purpose, not all the outsourced activities yield cost reduction if
seen from labor cost. However, cost reduction can be obtained from other cost
components such as selection and recruitement cost, new employees� training
cost, and machine tools investments for jobs which are no more required in
PT XYZ.
For the purpose of business focus improvement, through outsourcing, the
managers related to the outsourced activities will have more time to focus on their
tasks linked to the main operational activities in PT XYZ
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