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Outsourcing firm claims more revenue despite economic slowdown
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An employee heads into service outsourcing firm PT ISS Indonesia’s office in Bintaro, South Tangerang, Banten. (tempo.co/Wahyu Hidayat)
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ervice outsourcing firm PT ISS Indonesia saw high revenue growth in 2016 despite the domestic economic slowdown, thanks to increased demand for firms to reduce risks surrounding worker issues.
“During an economic slowdown, more businesses reduce risks from manpower issues by outsourcing more. We see this as an opportunity,” the firm’s president director, Elisa Lumbantoruan, said during a visit to The Jakarta Post.
“People say the economy is declining but last year was the best year for us with 14.8 percent revenue growth, higher than 13 percent in the past,” he said.
(Read also: Indonesia a potential hub for outsourcing: GSLI)
“That was even after we rejected some contracts totaling 11 percent of our whole business as we decided to only select those who were willing to pay the rate that we set,” he added.
The company is aiming for similar growth figures on the back of more contracts and maintaining customers’ trust through work quality.
ISS, the local arm of Denmark-listed ISS, is eyeing contracts from private and state firms amid ambitious government infrastructure projects.
“More and more state firms are using our services because they have started paying more attention to quality,” Elisa said.
The company, employing 61,000 workers, now has 3,500 clients, 20 of which contribute to 40 percent of its revenue. ISS Indonesia accounted for only 4 percent of its parent company’s revenue in 2015 of US$13.1 billion. (bbn)
