SZABIST ZABTECH provides technical and vocational education across Sindh, Pakistan through 8 permanent institutes. It aims to develop workforce skills and support economic advancement. In 2019, the finance department analyzed vehicle maintenance costs and found a 40% increase at one institute due to inexperienced student drivers. To control expenses, they outsourced the driving program to a vendor, citing cost savings as the business reason. While this addressed the rising maintenance costs, it initially faced resistance from affected drivers but had support from unaffected staff with reduced workloads. The outsourcing was ultimately implemented successfully.

1. SZABIST ZABTECH
GETTING TO KNOW US
Largest Private Sector Provider of
Technical & Vocational Education
and Training (TVET) in Sindh
Established in 2000, ZABTech aims to build a national workforce that is capable of
effectively participating in economic and social advancement of country through imparting
quality technical and vocational education.
With head office located at Karachi, and the state of art, visible, technical and vocational
education training Institutes spread across Sindh, today ZABTech has 08 permanent
Institutes at Hyderabad, Larkana, Shaheed Benazirabad, Khairpur Mir’s, Tando Muhammad
Khan, Thatta (Gharo), Sehwan (Jamshoro) and Islamabad. These Institutes are accredited
with National and Vocational Technical Training Commission of Pakistan (NAVTTC), Sindh
TEVTA and Trade Testing Board (TTB) Sindh.
ZABTech is a real citadel of technical & vocational education and training for the
communities in its wide catchment areas and beyond. ZABTech has established project
implementing units for the skill development of NEET (Not in Education, Employed,
Training) youth at Union Council level at Larkana, Kambar Shahdad-kot, Khipro-Sanghar,
Jamshoro, Dadu, Tando Allayar & Gambat.
Our staff is fully geared to implement new National Vocational Qualification Framework
(NVQF) level 1 – V, Competency Based Training & Assessment (CBT & A) and other focused
occupational long term & short term certification courses & diploma programs to students.
The acquisition of Technical and Vocational skills opens the doors of formal labor market
for the learners and help them develop entrepreneurial and other soft skills across different
disciplines. The programs include both theoretical studies at the institutes and relevant
practical application/on job training at work places.
ZABTech provides study opportunities in Business Management, Hospitality Management,
Information Technology & Computer Science, Finance & Accounting, Foreign Language,
Creative Arts, Manufacturing and Assembling and other skills enhancement trainings. It
enables the learners to select the program that best suits their employment opportunities.
The result orientated approach of ZABTech ensures academic integrity and the ability to
reach competitive results. The Institute boasts excellent facilities such as well-equipped
workshops, computer centers and business simulations that afford students to experiment
hands-on workplace skills.

2. 1.Describe the situation you are using to discuss the outsourcing dilemma (what happened,
who is involved, where did it take place, when did it take place, why did that happen)
What Happen
Budget was suggested From the Finance Department of SZABIST ZABTECH to the donors
(Europium Union ,US AID , CDP SINDH, NAVTEC) by 10.12.2018 and the program
implemented in 06.06.2019. As Likely Implement Program Successfully completed last year
of 15 different trades in 2018. The Second Financial Year Contract Signed in June 2019.
Who is Involved
Last Year no Responsible Person Indicated or get any analysis of 1 trades which is Car
Driving in terms of Cost vs Expenses.
Finance & Procurement Department after Being Conducted Cost Analysis found that
Maintenance Cost of Vehicle Owned Increased by 40% Maintenance Cost.
Where did it happen
SZABIST ZABTECH owned 20 vehicles in 8 Chapters in Different Location. Dadu Chapter
Maintenance Cost Increases and Faces issues to coordinate with vender.
When Did it Took Place
After Implement of Program, Month of August 2019 it was traceable by Cost analysis.
why did that happen.
Because of New Students handing vehicle which were not taught and the ability to drive are
being train on it so it was the phenomena that increase wear and tear in Vehicles.
Traceability and Visibility
It will also create loop hole to control maintains cost as Driver’s Denies their responsibility
for the condition of the vehicles.
Why is the company outsourcing? What were the reasons given regarding the motive of the
outsourcing decision? What, if any, environmental forces did management specifically cite
for triggering the decision?
Why company outsourcing
Procurement Department Indicated Management to Outsource this trade services as the
Expense over the Revenue will on Negative Curve by analysis and Comparison of Expense.
Reason for Outsourcing.
Cost Factor.

3. Ownership/Responsibility Deviation
Focus on Core Function
Asset Condition
Conflict of Interest for Maintenance Venders/Parties
triggering the decision
The final Decision taken on the spot as the parameter and metrics define conveyed the
complete message. Although by implementation it faces issues form vehicle driver’s.
3. What is the reaction from the affected workers? What did they say about the situation?
The only effected parties was drivers’ of vehicle and DTC(District Training
Coordinator).Although it was handled but faces conflict of interest of vehicle Maintained
from driver’s
They Enforced that it will not be done because its budget shifted to chapter was taken back.
4. What is the reaction from the not affected workers? What did they say about the
situation?
Because of involvement needed to handle the situation all the time from head office the
outsource help to push all the mentioned point of contract directly to the head office and
their work load decrease so they are satisfied.
5.What is the reaction from the public (media, politics, NGOs, etc.)?
No involvement
6.What is the business need? What did the company cite as the business reason for the
outsourcing decision
Decision would be made without compromise on the quality of service provided to the
students. We had not compromise on any quality of services. All the Parameters accepted
by the service provider.
7. What is your conclusion on the situation you described? Do you think the company made
the right decision? Was it handled as well as it could? What could they have done
differently?
As it was enforced and implement by me and no effect had done through from Donor and
the end user Field team so it went successful from October 2019 to April 2020.There is
always a pool of improvement so it will be done well if anyone had analysis on that. Till it be
on its best now.

4. Step 1.
Analysis of Expense data
Maintenance Cost Sum Up with Raw data entered in ERP day wise expenses.
Eg data of Junaid Jamshed Pvt Ltd Candela ERP data. Just indication as SZABIST
ZABTECH Expense ledger not approved to disclosed.
Find Uneven situation.

5. Step 2.
Before Suggest any good step. Complete your working from all of point of views to defend your
argument. Suggest Cost Improvement
Step 3.
After Presentation to the management and get approval.
Step 4.
Advertisement on newspaper ( Kawish)
Step 5
Find most competitive rates of FURD.

6. Contract Signed.

9. Payment Process