Having local employees abroad do jobs that the firm’s domestic employees previously did in-house. Off shoring is increasingly popular. Forrester Research projects that about 1.5 million jobs will move offshore by 2010, 2.5 million jobs will go by 2013, and over three million jobs will go by 2015. Put another way, a report form the McKinsey Global Institute says that the total value of off shoring (also called outsourcing) will grow from about $33 billion in 2002, to over $ 100 million in 2008.
Off shoring is very controversial. In the 1990s, it was mostly manufacturing jobs that employers shipped overseas. Between 2000 and 2015 the US Labor department and Forrester research estimate that about 288,000 management jobs will go offshore , 472,000 computer jobs, 184,000 architecture jobs and almost 75,000 legal jobs, and about 1.7 million office jobs. Proponents contend that employers must off shore jobs to remain globally competitive and that the money employers thereby save boosts research and development and eventually create even more domestic jobs for US workers Opponents naturally worry that this jobs drain will mean millions fewer jobs for American workers.
Off shoring and HR
The pros and cons not withstanding off shoring is a matter that human resource managers will have to deal with. For one thing of shoring tends to be a uniquely HR dependent activity. The traditional reason firms went abroad was to develop new markets or to open up new manufacturing facilities to serve local markets. In such cases, marketing, sales, and production executives naturally played the pivotal roles. Off shoring on the other hand, mostly involves human resource management . Employers seeking to gain a cost advantage by off shoring say, a call center look to their human resource managers to help identify high quality low cost talent abroad and to provide the necessary information on things like foreign wages rates, working conditions and productivity.
Finding a city abroad that provides a wealth of low paid, high quality technically competent workers is only part of the task of making off shoring succeed. Among other things the human resource manager also needs to make sure that there is an effective supervisory and management structure in place to manage these workers and that all the employees receive the screening and training that they require. In staffing its local facilities it may be advisable to retain local legal counsel, both to navigate local laws and for advice regarding cultural hiring practices. Furthermore particularly given the vast distances involved, the HR managers also need to ensure that the compensation policies and working conditions are satisfactory. Off shoring after all, is a fast growing industry and these local employees are just the sorts of mobile talent who acne easily moves to new employers.
Global Demand for Indian talent
India’s predominantly young population is now considered as the work ready talent pool that can be recruited by the world. This forms the core group that supports the outsourcing initiatives. Increasingly the competitive educational system of India produces people to staff the growing demand for talented workforce. However, it does not mean that all graduates in India re equally employable.
Graduates for government founded educational institutions, particularly the Indian Institutes of technology (IITs), Indian Institute of Sciences (IISc) the All India institute of Medical Sciences (AIIMS) and the Indian Institute of Management (IIMs) are much sought after by international employers. Private institutions like Birla Institute of Technology and Science Pilani, the Christian Medical College, Vellore Xavier Labor Relations Institute Jamshedpur and a few others have also made their mark in the international employment markets. Global corporations including investment banks and consulting house view the above institutes as a key source for global talent. A few students from these institutes are able to claim a entry level salary equivalent to that of graduates from premier business schools around the world. The vast pool of engineers trained in Indian engineering colleges support IT boom across the world . Similarly nurses, teachers, and doctors from India are employed in the United states , Singapore and Europe where there is a shortage or trained personnel in those areas. Middle East countries like Saudi Arabia employs a large number of Indians in all sectors and levels. At the same time there were instances of Indians employed abroad who where bound by unfair contracts or exploited.