The Pakistan Steel management is going all out to privatize non-core activities. It will result in the layoff of another 2,500 workers. Hopefully, enough thought has gone into the difficulties of integration of a multiple-headed logistical support system with the delicate operations at the process. Petty contractors are a difficult lot and are known for making trouble and corrupting the management. Sooner than later they form cartels for squeezing and effectively nullifying the financial advantage to the hiring organization.
Service suffers as a consequence and affects production.
The argument for process industries to have their own service facilities is largely valid especially in locations where infrastructure facilities are non-existent or antiquated. The Pakistan Steel would require to work out its own practicable mix of the owned and the hired facilities, to ensure efficiency and guaranteed service. They will need to do some research, fully evaluate the risk factor and establish cost effectiveness of the option they choose. They must then come up with faultlessly drafted contracts and proposals for credible guarantees. The Pakistan Steel has a history of coming up with remarkable pieces of inefficient staff work.