Reference no: EM13304568
Company outsourcing has always been and will always be a controversial issue. Ethical, legal and business questions began surface. Although all the answers are not clear, many employees want to know, what about me! Global outsourcing is the business practice of transferring offices or manufacturing centers overseas while remaining headquartered and tax- liable in one's home country (Editorial Board , 2011). Businesses outsource workforce, to hopefully help improve productivity. Labor is inclined to be less expensive in other counties outside the United States and Europe. A company's first mission of global outsourcing is to determine the benefit; cost saving, and production time decrease.
When an organization is outsourced various legal issue are involved. There is a big difference between the home state laws, and the offshore regulations. Foreign law may require licenses, mandate employee benefits, and dictate the amount of time a non-national may work in the country (Editorial Board , 2011). For example, training will need to take place; a citizen of another country will have to come to the United States for a period of time, and vice versa in many cases. All parties of the company will have to ensure, all immigration laws are being pursued. The laws of the destination country will prescribe taxes to be paid on wages and will also establish human resources guidelines (Editorial Board , 2011).
On a business standpoint, a company would want to know the organizational structure of the country. Do we know if the country has an identical mission statement that the company pursues? Can women move up the corporate chain; in some countries women cannot attend business meetings. How as a company can we function in a different country with these regulations? As a business being familiar with the culture of Asia, should determine the success or failure of business. Since only the call center is being offshore, we the business loose business due to a language barrier of the employees and customers. If all aspects are not factored efficiently, the business will suffer and everyone will lose their jobs.
orally the company losses respect if its long term employees. None the less it may just be a call center position; however each position adds value to the company. Usually when making a decision to outsource, the company is in financial depict, looking for a way out. The outcome is that a vast amount of United States employees will lose their jobs. The HR staffs will be required to do more with limited resources. Per Gordon Simpson, of Americas at DHL Global Forwarding "Nearly everyone, and nearly every company, faces the challenge of doing more with less" (Krell, 2013)