What is best sourcing
If your company buys outsourced services, such as cleaning, security and landscaping, we encourage you to adopt best sourcing.
Service buyers who practise best sourcing, rather than cheap sourcing, award service contracts based on performance and quality, instead of solely based on price. In doing so, they get more reliable services and better value for money.
At the same time, outsourced workers benefit because the service providers focus on delivering quality services instead of offering the lowest price. They provide better employment terms and conditions so that their workers are more motivated to perform well.
Best sourcing principles
You are encouraged to consider these 7 best sourcing principles when buying services:
- Safeguard the basic employment rights of workers.
- Ensure progressive remunerations and benefits for workers.
- Implement outcome-based contracting by specifying service-level requirements rather than headcount.
- Recognise factors that contribute to service quality.
- Provide a decent work environment for workers.
- Seek to establish a long-term collaborative partnership with the service provider.
- Build a fair contracting partnership with service providers.
Guides for best sourcing
You can download these guides, released by MOM and its tripartite partners, to understand best sourcing practices and how to implement them:
Check on service providers
You can also take into account a service provider’s track record in complying with employment laws before awarding a service contract.
To check on their track record, refer to the following lists: