Outsourcing, an alternative for savings or labor damage in Mexico?

Abstract

In this paper, the most relevant factors of outsourcing and their impact are analyzed. In Mexico, many companies offer subcontracting or outsourcing services that operate illegally or do not comply with the legal requirements that the Federal Labor Law stipulates, directly affecting workers, since there is a violation of their labor rights without any social benefit , Outsourcing well planned implies a series of benefits in favor of the company and workers, the Ministry of Labor and Social Welfare, assures that in Mexico the country there are almost five million people subcontracted, many are in the informal economy, without registration in the Mexican Institute of Social Security as a beneficiary, a worrying situation because, in addition to this, under this labor system, taxes are evaded, unrealized jobs are simulated, ghost companies are created, few workers are registered, they abuse the under-registration and the need of workers, they estimates that 6 thousand outsourcing companies could be affecting workers It is due to illegal behavior. To date, the amount of tax evasion is calculated to be more than 21 million pesos per year. Undoubtedly, outsourcing is used by some companies to simplify or make human resources management easier, as well as to reduce time and costs for their business, but the worker, by not belonging directly to the company, can present a situation of exclusion and in case of affectation of their labor rights.