Research on the Influence of Labor Outsourcing on Enterprise Cost, Production Factor Allocation and Risk Management

Abstract

Labor outsourcing is adopted by more and more enterprises. Outsourcing enterprises often cannot directly control the production or
service quality of the outsourced party. Cultural differences, communication barriers and difficulties in quality supervision make the supervision and management of outsourcing projects face great challenges. If the outsourcing service fails to meet the expected standards, it may lead
to supply chain disruptions, reduced customer satisfaction and damaged brand reputation. With the introduction of relevant laws and regulations, enterprises adopt fake outsourcing, real dispatch to circumvent regulatory restrictions, facing risks such as legal proceedings and administrative penalties. In addition, labor outsourcing will cause labor rights issues and further increase the compliance burden of enterprises.
The high mobility of outsourced personnel is a common problem of labor outsourcing. High-frequency personnel turnover may affect the production stability and service quality of enterprises, lead to increased personnel training costs, and affect the sustainability of long-term cooperation. Outsourcing enterprises need to share key information and sensitive data, and the risk of information leakage or data abuse increases,
which will cause enterprises to suffer serious economic losses and legal liabilities.