Abstract

Indonesia in economic proportions can be categorized as an industrial country. The change in regime in Indonesia from the new order to the reform order gave birth to various policy changes including in the field of employment, including through the implementation of Law no. 13 of 2003 concerning Employment, which regulates the Outsourcing System. In the world of employment in Indonesia, outsourcing policy is one of the steps taken by the government in recruiting workers in both the public and private sectors in Indonesia. In implementing this system there are differences, namely the implementation in the field and what is stated in the contents of the law. The problem that arises is the gap in the pros and cons of employees working in companies with an outsourcing system. Through a comprehensive literature review and case study analysis, this research aims to answer the impact of outsourcing work systems by examining the motivations, benefits and challenges associated with outsourcing in the context of contemporary business operations. This research took place in the West Surabaya City area. Where the factory industrial center has a role in improving the economy of the working community, especially the surrounding community. The location was chosen deliberately as a condition and aim of the research. This research uses a qualitative approach with a phenomenological paradigm. The final conclusion is that workers' lack of knowledge about the outsourcing system is the reason why there are still workers who are reluctant to join this outsourcing system.

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