Indonesian Political, Business & Finance News

Competition in the Outsourcing Industry Intensifies, PKSS Expands Business Market

| | Source: REPUBLIKA Translated from Indonesian | Business
Competition in the Outsourcing Industry Intensifies, PKSS Expands Business Market
Image: REPUBLIKA

The challenges in the outsourcing services industry are becoming increasingly competitive. Competition arises from the emergence of similar new companies and the limited supply of competent standard workforce.

“Outsourcing manpower is indeed facing a tight situation, such as in recruiting security guards and drivers; these are businesses that are easy for competitors to enter, types of businesses that are easy to imitate,” said President Director of PT Prima Karya Sarana Sejahtera (PKSS), Sadmiadi, during a press conference in Jakarta on Thursday (9/5/2026).

That competition, Sadmiadi said, has even reached price offers to clients. “Elbowing each other, the company’s sustainability is threatened,” he emphasised.

For context, PT PKSS is a subsidiary or part of the BRI Employees’ Welfare Foundation. PKSS operates in human resource management and currently has more than 300 clients with 52,000 recruited personnel across 35 regions throughout Indonesia.

Around 70 percent work in basic jobs such as security guards, drivers, cleaning services, up to couriers and office boys, with an average high school graduate education. In addition, there are also positions as secretaries, admins, IT, up to contact centre services with average diploma graduates and above.

Reflecting on that competition, according to Sadmiadi, PKSS continues to strengthen its business market expansion efforts. In addition to the Manpower Process Outsourcing or outsourcing manpower sector, the company focuses on providing BPO (Business Process Outsourcing) services or outsourcing in the financial sector.

For example, managing resources in sales and collection services. “We offer it to clients so that the costs incurred are no longer focused on fixed costs,” he said.

However, recruitment in the financial sector, especially in sales and collection, is not an easy matter. Because many workforce resources prefer to work in internal parts like admin or cleaning services.

PT PKSS is also venturing into Knowledge Process Outsourcing (KPO) services or advanced outsourcing. KPO focuses on information-based work, analysis, and special expertise such as market research and financial analysis. “Currently, our MPO portion is still 94 percent, while BPO is 4 percent, and 1.7 percent (KPO). We want the portion outside MPO to increase,” he said.

Finance and Operations Director Issuhersatyo added that there is a perspective that must be changed in the mindset of the workforce in Indonesia. So far, many have a mindset like civil servants, namely getting a salary, status, and pension. “This mindset must be changed,” he said.

In many other countries, workers instead want to continuously improve their skills or abilities by working in many places and positions. “Well, we want to become a talent bridge, everyone must have the ability to develop themselves. We provide many job opportunities,” he said.

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