Challenges, Problems And Prospects Of Outsourcing Human Capital In Nigeria

1.0 introduction

1.1 Background of the Study

Every business organization regardless of their scope, size, mode of operation has an ‘end’ in which they work towards, such ‘end’ is referred to as aims and objectives to be met within a stipulated time based on the organisation’s tradition.

However, it is pertinent to know that there is no ‘end’ without ‘means’ of getting to such ‘end’, these ‘means’ in any organisation are of different categories namely: Man, Machine, Money, material, Time, Technology. These ‘means’ which are regarded as the resources or useful resources in all organisations cannot work autonomously and out of them all, man which is regarded as the human resources is the most important aspect of all these resources, if an organisation must achieve its stated objectives. It is however, significant to know that no organisation can exist without human resources as far as the world is concerned. Since all activities like planning, extracting and processing of all other resources to make them useful in diverse ways as required by the organisation, and as required in line with the corporate objective of the organisation.

Human aspect of any organisation must be well nurtured to achieve the stated aims and objectives of the organisation and this give rise to the need of personnel management department in every organisation which serves as an effective utilization of human labour towards achieving set goals via the production of quality goods and services that can meet consumers taste and fill their needs profitably. Since the recruitment of human being is to achieve the firm’s growth and aims, the company will endeavour that the wages and salaries to be paid to the employees does not disturb the planned profit from the production and selling of goods and services produced through the employees. Abefe-Balogun (2001)

Thus, human being though, very essential and must be taken good care of, yet it must not be to the detriment of the company’s aims and objectives which is mainly profit. Therefore, the interest of one must not be at the expense of the other, which means there must be goal congruence.

1.2 Statement of the problem

This research work focuses on the challenges, problems and prospects of outsourcing human capital in Nigeria, precisely private sector Economy.

During the last few years there has been an increasing and unprecedented trend on the part of business institutions to outsource their core and ancilliary business functions. This is because outsourcing encourages the organisation to have greater focus on core business products and growth, while saving time and money. While various reasons are given by manufacturers or employers for outsourcing, it is an undisputed fact that with outsourcing of Human resources the rights and privileges of the workers are gradually eroded as well as those in permanent employment run the risk of losing their appointment. There is a growing concern of security of employment.

Casualisation is assuming a dangerous position because so many companies are calling it either casualisation or outsourcing. Give it whatever name it is taking a dangerous dimension, and that is why we are trying to bring all the unions in all the industries along to work together, plan together, so that we can fight this evil. Because this is a capitalist state; their interest is not about human beings.

Infact, even their machines are more valued than human beings the workers. Except we come together to fight this monster, the unemployment will increase by the day. Bright (2007).

However, the problems and challenges of outsourcing human capital in Nigeria has turned to be a national problem and the problems and challenges encountered through outsourcing of human capital is far beyond the prospects thereof in Nigeria as a whole.

Though, most organisation hide under the disguise that they only want to concentrate on their core activities, that is why they contract out their aspect of human resources management but it is now crystal clear that organisations most especially banking industries are only interested in the achievement of their stated objectives without considering the interest of their employees. Outsourcing of human capital is though, advantageous to organisations but how about its side effect on the employees and the country’s Economy, precisely the private Economy and this bring the emergence of this project work using the Bank PHB (Consisting of Platinum and Habib Bank) Headquarters, Human Resources Department 10, Tiamiyu Savage Street, Victoria Island Lagos.

Furthermore, this research work is to study the difference between those organisations using the outsourcing system of recruitment and those using in sourcing system of recruitment, this research work will base its testing case on First City Monument Bank (FCMB) Headquarters, Human Resources Department, Boston House 10/12 Macarthy Street, Ikoyi S. W. Lagos (The organisation that uses in sourcing system of recruitment) to bring about the evil in which outsourcing has brought to Nigeria as a whole and the ruin it can bring to the future of Nigerian youths and the aftermaths of the effects on the populace both illiterate and literate, take for instance if a ‘breadwinner’ of a family is short paid, he won’t have enough to cater for his immediate family and his dependants.

1.3 Objective of the Study

The objectives of this study are:

To find out the challenges involved and how the employees recruited through outsourcing system can cope with such challenges.

To find out problems encountered by the employees recruited through consulting firms i.e. Outsourcing system of recruitment.

To find out the prospects enjoyed by those companies using outsourcing system of recruitment.

To examine if the so called outsourcing system is enslavery on the part of the workers and to what extent.

To know the effect of outsourcing system of recruitment on Nigeria Private Economy.