Outsourcing labor to comply with India’s labor laws

An article in the New York Times (Nov 29, 2011) describes the outsourcing of the salespeople by Whirlpool’s India division. The varying labor regulations and enforcement, rules regarding layoffs for companies with mo than 100 employees etc, all combine to make compliance cumbersome.  Hence outsourced companies like Teamlease, described in the article, provide the labor required, as temporary employees, to work in companies.  Will the Indian government have to increase contract flexibility to grow jobs ? Will the potential lack of commitment by the temporary employee hurt productivity to the point of being uncompetitive in global markets ? How can the differential rule enforcement across Indian states, and associated competition for industries, change the labor environment to deliver growth ?

About aviyer2010

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