Outsourcing ensures public services can be provided in a cost-effective manner, the Efficiency Unit says. It can also offer jobs and promote business opportunities in the private sector.

A survey on government outsourcing conducted in August last year has shown that the community is benefiting from the provision of services of equal or better quality to those previously provided by departments themselves, and at lower cost.

Departments are encouraged to use open and competitive tendering to ensure the best offer is selected and the contractors' work is monitored for service quality throughout the contract period.

They are also monitored to ensure value for money and workers' rights. Non-skilled workers contractors employ are protected by measures adopted to protect their welfare and salaries.

A mandatory requirement was introduced in May last year to ensure monthly wages of such non-skilled workers is level with market rates.

Government service contractors have also been required to sign a standard employment contract with their non-skilled employees since April this year. The contract stipulates the monthly wages, working hours, method of wage payment and other conditions of employment.

Measures ensure workers' rights, welfare are protected

Procuring departments have set up monitoring mechanisms, including complaint hotlines, to ensure contractors comply with the terms of their contracts. They also conduct regular wage and attendance checks and interview the workers to ensure they are not being cheated.

The Labour Department investigates complaints to safeguard the workers' rights and benefits under labour laws. Employers are prosecuted whenever there is sufficient evidence. In the first eight months of this year, labour inspectors interviewed more than 2,000 non-skilled workers during 531 inspections. The number of such inspections rose about 90% over the same period last year. Seven contractors were convicted of labour-law offences.

Procuring departments have to consider contractors' previous conviction records under the relevant ordinances when assessing contractors' tenders for outsourced projects.