Outsourcing Government Services

Contributed by one of our readers.   Download the mandarin version here.

The third party Integrated Facilities Management (IFM) service market in Singapore is poised for growth. With outsourcing and privatization trends gaining momentum among establishments and the rising awareness of the need for environment-friendly practices, the market is set to benefit significantly. IFM services market in Singapore earned revenues of US$472.1 million in 2006 and is estimated to reach US$1,011.6 million in 2013

Frost & Sullivan Research Analyst Terrance Duncan said, “The Singapore Government has played its part by taking the leading role in boosting such service within the country.”  Clearly, government transparency is boosting the demands for third party IFM services.

The government and other private establishments prefer to outsource non-core activities that involved janitorial, landscaping and certain engineering services. Resistance from in-house management is also expected to fade away as businesses start to pay more attention to only core activities within the organization. This should provide a boost to the third party IFM services market.

Duncan added, “Realizing the full potential of opting for third party IFM services will benefit the entire organization in the long run. Moreover, finding the right partner and carefully negotiating FM contracts will benefit a company’s bottom line.”

Major market segments have joined the bandwagon of adopting IFM services. However, third party service providers will need to aggressively market their products and ensure that all benefits are understood in a competitive market such as Singapore.

Please make a guess what are these so-called ”benefits”. 

The non-core activities which engaged IFM services mainly involved almost all workers from janitorial, landscaping and certain engineering services. These workers who have been working in these government sectors have, overnight, become the third party private establishments who contract their former jobs. However, in the process of this change in organizations, they are no longer the staff of the government.

Consequently, they have forfeited their remunerations such as employers’ central provident funds (CPF), medical insurance, annual leaves, annual bonus and the starting pay. I can understand the benefit of these restructuring if Singapore Government has an annual budget deficit. But, is it necessary to rob the insignificant wages from these lowest level workers when Singapore Government pocketed the remaining amount of S$2 billion from the annual budget?

In the coming election, are you going to cast your sacred vote to Lee Kuan Yew and his son again? If so, it is not them who are uncompassionate and merciless, but you are.



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