Outsourcing In The Construction Industry

While outsourcing is not a novel concept for many business organizations, we have noted that it is increasingly being used by clients in the construction sector and is impacting the planning, procurement and implementation of major construction projects.

Traditionally, back office functions like accounting, payroll and other routine administrative tasks have been outsourced to third party service providers in Canada or abroad. The key impetus that drives outsourcing tends to be cost reduction and the efficient allocation of resources. Space, personnel and other resources devoted to routine and reasonably predictable tasks need not be located in head offices in locales with high rents and tight labour supply.