Dozens of River Edge residents and employees, many wearing fluorescent green T-shirts reading “I support my D.P.W.,” filled council chambers last week to implore the governing body not to outsource Department of Public Works (DPW) duties to outside contractors.

The idea of outsourcing at least some public works services was floated at a council meeting last month, when DPW Superintendent John Lynch came before the council with a detailed list of the department’s duties and costs at the request of Councilman Johnny Porco.

Porco, the council’s finance chair, explained that he is exploring any possible cost savings as he looks forward to next year’s budget season, which he said promises to be difficult.

“We have to look at every way possible to save money,” he said. “It doesn’t mean we are looking to cut all of our services, but we have to look at it in depth.”

During his report to the council, Lynch said that since 2009, the department’s budget has been reduced by about $117,000. Through the use of new equipment, and changing some of its operations, like introducing commingled recycling, which eliminated the need for employees to sort recycled materials, the DPW has increased its efficiency and has been able to get by with a reduced workforce, he said.

Five employees have retired from the department in recent years and were not replaced. A sixth was let go this year, after the department was given a choice between furloughs or a layoff during budget discussions. Another DPW employee is expected to retire in September, which will save the borough about $84,000 in salary and benefits. Since 2007, the department has maintained the borough’s parks and other properties without the use of seasonal help.

In total, Lynch said, the department’s annual “manpower hours” have been reduced by 18,160.

During the council’s June 6 meeting, members of the public spoke in support of the DPW, and questioned what services would be lost through outsourcing.

Many of the department’s employees are also members of the borough’s volunteer fire department, and work closely with emergency services.

“I think what a lot of you don’t realize is when there’s a fire call in a snowstorm, they plow the street so we can get to the fire,” said Gregg Cariddi, a volunteer firefighter. “During the blizzard last year, there was a smoke alarm on Eastbrook Drive. By the time we got there, the street was plowed curb to curb. Do you really think that a private contractor is going to do that?”

Police Chief Tom Cariddi emphasized the close relationship between the police department and the DPW.

“We can’t do our emergency services without this department,” he said. “When the borough mechanic may be working on cleaning up leaves or recycling, if I have a police vehicle down, the mechanic can be reassigned and put one of our vehicles back into use again. Without looking at that cooperation of effort, I don’t think any decision can be properly considered.”

Mary Baker, the president of the River Edge Volunteer Ambulance Service, spoke of the assistance the corps receives from the DPW.

“During the long, icy, snowy winter, we never had a problem getting our rigs out, thanks to the DPW,” she said. “Since they are in radio contact with us and in tune to our needs, we have always gotten an ambulance to the scene with no problem.”

Others spoke of the hardships that may be placed on residents if services were reduced, such as having homeowners bag their own leaves.

“I would ask the council to look deeply into these decisions being made,” said John Mauthe, a fire department member. “There are a lot of hidden costs. I can bag my own leaves, but seniors will have to hire someone to come in.”

One member of the department, Christopher Weismann, spoke of his dedication to the borough in the years he has been employed by the DPW. A River Edge firefighter and resident for 20 years, Weismann introduced his wife and daughter and asked the council to consider the human cost of outsourcing his and others’ positions.

“The possible loss of my position would affect my family, and my life in the borough that I have proudly served in both departments,” he said.

Council members stressed that no decisions had yet been reached. The borough must explore any available cost saving opportunities, given the likely looming budget crunch, officials said.

“Outsourcing for everything is not the answer, we understand that,” said Council President Paul Cordts. “But for us not to even look at something, we wouldn’t be doing our jobs.”

Source:http://www.northjersey.com/news/123761164_Outsourcing_suggestion_has_critics_.html

The council, run by the Tories in coalition, as at national level, with the Liberal Democrats, is the first in Britain to announce plans to move local jobs, funded by local taxpayers, out of the country. Activists fear that if the city council “gets away” with its controversial plan then thousands more town hall jobs will end up overseas.

Redundancy notices have already been served on 70 IT staff who have been told they must “train their replacements” before they go.

Mike Whitby, Conservative leader of the council, said the plan, together with new staff contracts which break nationally agreed terms and conditions, are designed to make the authority “fit for the challenges facing the public sector.” But Unite national officer Peter Allenson said: “It beggars belief that council workers will be forced to train workers from overseas to do their jobs so Birmingham council can lift and shift them abroad.”

Unite and Unison members employed by Southampton City Council have warned of more strikes unless the authority “gets serious” about resolving a row over jobs, pay and conditions. The Conservative-controlled council has issued its entire workforce of 4,300 with three-month dismissal notices saying they must accept a 5.5 per cent pay cut or face the sack.

Source:http://www.tribunemagazine.co.uk/2011/06/union-fury-over-conservative-council%E2%80%99s-outsourcing-plans/

Outsourcing used to be a dirty word associated with companies looking to cut costs at the expense of decent customer service.

But a new trend is emerging, with the UAE at its centre, in which outsourcing is seen as a means of offering better quality, not worse.

The global industry, which is worth US$370 billion (Dh1.35 trillion), is projected to rise to $479bn by 2016, with Jordan, Egypt and the UAE showing the highest growth rates.

The UAE’s outsourcing sector is projected to increase by 10 per cent over the period, to $1.08bn by 2016 as a result of its location and diverse workforce, according to a new report by Dubai Outsource Zone and the consulting firm Frost & Sullivan.

Companies know they can no longer get by merely with low-paid employees who do not have the language or interpersonal skills to manage customer calls.

“Cost efficiency remains a very important issue but it’s also about a certain level of quality of service,” says Lindsey McDonald, an information and communication technologies consultant for the Middle East and North Africa at Frost & Sullivan.

Ms McDonald says the UAE offers companies the opportunity to staff call centres with employees who speak a number of languages, and can therefore deal comfortably with Emiratis, western expatriates and those from the Asian subcontinent. She says it can be slightly more expensive for outsourcing firms to hire staff here compared with countries such as Egypt and India, but that can be offset by providing higher quality.

“The main advantage here is the foreign language capability,” says Ms McDonald. “Operating in the UAE might be more costly than other destinations but it’s a cost-effective value proposition rather than a low-cost one.
Up until the crisis we weren’t really worried about operational costs in this country. Now all of a sudden we have realised we do need to focus on reducing (those costs) and outsourcing presents a fantastic opportunity to do that. It also allows you as a client to focus on what you’re good at.”

The market in the UAE was initially focused on travel and tourism, as well as financial services, but there are opportunities for growth in other sectors.

“There are so many key market areas, like (information technology), finance and the public sector and we assume that there will be an expansion of the outsourcing activities in health care,” says Malek al Malek, the managing director of Dubai Internet City and Dubai Outsource Zone. “Of course tourism will continue, and others are insurance and education. These areas should be a focus for outsourcing companies.”

Ms McDonald says asset management and security are also growth areas. The UAE could gain a greater market share as a result of the security situation in Egypt, but is not expected to challenge its leadership of the Middle East and North Africa region.

“Because Egypt is such a big market there’s a lot of doubt in that market. It actually does play favourably for other destinations such as the UAE and Jordan that offer comparative security,” says Ms McDonald.

Source:http://www.thenational.ae/thenationalconversation/industry-insights/the-life/when-outsourcing-call-centres-can-offer-better-quality