India hikes outsourcing service charge to 7%
NEW DELHI, INDIA — The Ministry of Finance is mandating a fixed minimum service charge of 7 per cent for outsourced manpower procurement to address exploitation in the industry.
Under the government’s policy, the new minimum service charges for the procurement of manpower outsourcing service at 3.85% (3% profit plus transaction charges, which are 0.85% at present), as proposed by Government eMarketplace (GeM) — an online platform for public procurement in India.
“The procuring entities can also fix the service charge above 3.85% with proper justification on file, wherever required. However, such charges should not exceed 7% (including transaction charges) in any case. Least cost system (LCS) may be considered for procurement, wherever appropriate, especially in high value cases,” read the order.
Related news
- India’s top IT firms see hiring slowdown · 18 Jan
- Fijian tourism brand Rosie Holidays ventures in BPO biz · 18 Jan
- Spain’s digital nomad visa draining LATAM tech talent · 18 Jan
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
