LOCAL STAFF OUTSOURCING

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LOCAL STAFF OUTSOURCING

  1. 1. John EP
  2. 2. In an ideal world ...•the policemen would be English•the car mechanics would be German•the cooks would be French•the innkeepers would be Swiss•and the lovers would be ItalianIn a living hell ...•the policemen would be German•the car mechanics would be French•the cooks would be English•the innkeepers would be Italian•and the lovers would be Swiss
  3. 3. •Outsourcing is the process by which acompany contracts another company toprovide particular services.•These services/ functions would beotherwise carried out in-house, by thecompany’s own employees.•Outsourcing is becoming more and morepopular in today’s business environment,and most companies outsource somework or other.
  4. 4. There are several different kinds of outsourcing,based on the nature of work outsourced. Somecompanies tie up with service providers for narrowfunctions. However it is also common these days tooutsource entire operations.Outsourcing can be placed in two broad categories,namely Information Technology Outsourcing (ITO)and Business Process Outsourcing (BPO).Business process outsourcing can again be subdivided into call centre outsourcing, humanresources outsourcing (HRO), finance and accountingoutsourcing and claims processing outsourcing.
  5. 5. A high context culture is one in which the communicators assume a great deal ofcommonality of knowledge and views, so that less is spelledout explicitly and much more is implicit or communicated in indirect ways.
  6. 6. A low context culture is one in which things are fully (though concisely) spelled out. Thingsare made explicit, and there is considerable dependence onwhat is actually said or written.
  7. 7. In a low context culture, moreresponsibility is placed on the listener tokeep up their knowledge base and remainplugged into informal networks.Low context cultures include Anglos,Germanics and Scandinavians. Highcontext cultures include Japanese, Arabsand French.
  8. 8. Monochronic vs PolychronicMonochronic cultures like to do just onething at a time. They value a certainorderliness and sense of there being anappropriate time and place for everything.They do not value interruptions.Polychronic cultures like to do multiple thingsat the same time. A managers office in apolychronic culture typically has an opendoor, a ringing phone and a meeting all goingon at the same time.The Germans tend to be monochronic.
  9. 9. ImplicationsGerman businessman cannotunderstand why the person he ismeeting is so interruptible byphone calls and people stopping by.Is it meant to insult him? When dothey get down to business?
  10. 10. Future vs Present vs Past OrientationPast-oriented societies are concerned withtraditional values and ways of doing things.They tend to be conservative in managementand slow to change those things that are tied tothe past. Past-oriented societies include China,Britain, Japan and most spanish-speaking LatinAmerican countries.
  11. 11. Future vs Present vs Past OrientationPresent-oriented societies include the rest of thespanish-speaking Latin American countries. They seethe past as passed and the future as uncertain. Theyprefer short-term benefits.Future-oriented societies have a great deal ofoptimism about the future. They think theyunderstand it and can shape it through their actions.They view management as a matter of planning,doing and controlling (as opposed to going with theflow, letting things happen). The United States and,increasingly, Brazil, are examples of future-orientedsocieties.
  12. 12. Quantity of TimeIn some cultures, time is seen as being a limitedresource which is constantly being used up.ImplicationsTime-plentiful cultures tend to rely on trust todo business. Time-limited cultures dont havetime to develop trust and so create othermechanisms to replace trust (such as strongrule-by-law).
  13. 13. Power DistanceThe extent to which people accept differences inpower and allow this to shape many aspects of life. Isthe boss always right because he is the boss, or onlywhen he gets it right?ImplicationsIn high power distance countries (most agrariancountries), bypassing a superior is unsubordination. Inlow power distance countries (US, northerneuropeans, Israel), bypassing is not usually a big deal.In the US, superiors and subordinates often interactsocially as equals. An outsider watching a party ofprofessors and graduate students typically cannot tellthem apart.
  14. 14. Individualism vs CollectivismIn individualist cultures, individual uniqueness, self-determination is valued.ImplicationsA market research firm conducted a survey of touristagencies around the world. The questionnaires cameback from most countries in less than a month. But theagencies in the asian countries took months to do it. Aftermany telexes, it was finally done. The reason was that, forexample, American tourist agencies assigned the work toone person, while the Filipinos delegated the work to theentire department, which took longer. The researchersalso noticed that the telexes from the Philippines alwayscame from a different person.
  15. 15. Organisation Germans are often uneasy with uncertainty, ambiguityand unquantifiable risk. This has become manifest in both social and business spheres. Socially, Germans lean towards conservatism and conformism.When doing business in Germany it is possible to notice a heavy emphasis on careful planning, consideration, consultation and consensus. This has developed anappreciation for detail, facts and statistics. Organisation is a means of negating uncertainty and averting risk.
  16. 16. Aversion to RiskThe emphasis on conformity combined with a fear of theunknown makes Germans very apprehensive about risk. Security is guaranteed through risk analysis. This is achieved through careful deliberation and scrutiny based upon factual evidence as opposed to intuition or gut-feeling. Written documentation is seen as the safest and most objective medium for analysis. A painstakingreview of details ensures all relevant information has been taken into consideration.
  17. 17. Communication Germans value their privacy. Mentally there is a dividebetween public and private life. As a result, Germans wear a protective shell when doing business. Since intimacy is not freely given, this may be interpreted as coldness. However, this is not the case. After a period of time walls and barriers eventually fall allowing for more intimate relationships to develop. Communication styles in Germany may be perceived as direct, short and to the point. Formality dictates thatemotions and unnecessary content do not have a place in conversation.
  18. 18. Meeting & GreetingFirm, brief handshakes are the norm when doing business in Germany. When several people are being introduced take turns to greet each other rather than reaching over someone elses hands. Avoid shaking hands with one hand in your pocket. When women enter a room it is considered polite for men to stand. German etiquette requires you to address someone using Herr (Mr.) or Frau (Mrs/Ms) followed by their surname. Only family members and friends use firstnames. Professional titles should also be used for doctors, academics, etc. Try and establish professional titles prior to any meeting.
  19. 19. Doing Business - PunctualityWhen doing business in Germany, remember that punctuality is a serious issue. Business people work hard and are under a lot of pressure. Germans typically plan their time very carefully. It isconsidered bad etiquette to be late or early as it shows disrespect for peoples time. Doing Business - Humour A common misconception is that the German sense ofprofessionalism and strict protocol when doing business leaves no room for humour. An element of this true in that jokes are not commonplace. Yet Germans, just as much as anyone else, like tolaugh and as long as it is appropriate, tasteful and in context then humour is acceptable.
  20. 20. Meetings and NegotiationsGermans plan ahead. Therefore, ensure youbook meetings at least 2-3 weeks in advance. This is also applicable if you wish to have lengthy telephone conversations. Meetings are usually held between 11-1 p.m. and 3-5 p.m. Avoid Friday afternoons, the holiday months of July, August and December and any regional festivals.
  21. 21. Meetings and Negotiations Meetings are functional, formal and usuallystick to a set agenda including start and finishtimes. The phrase lets get down to businessis definitely appropriate for German business meetings as small talk and relationship building are not priorities.
  22. 22. Meetings and Negotiations When entering a room the most senior of you should enter first. The most senior German counterpart should be greetedinitially before any others present. Wait to be told where to sit. Treat the whole process with great formality.
  23. 23. Meetings and Negotiations The Germans will analyse proposals thoroughly. Ensure the information you provide is in written format and presented scientifically. Logicalconclusions based on empirical evidence will only normally carry any weight. Remember decisionswill not be made on your sales technique or charm but on concrete facts that demonstrate a sound opportunity with minimal risk.
  24. 24. Meetings and NegotiationsDecisions are made slowly and methodically. Do not try to rush proceedings or applypressure. If anything, enquire as to areas inwhich you may be able to furnish them withadditional or more specific information. Try and back-up information with insight from personal experience or professional qualifications. Once a decision has been reached minds are very rarely changed.
  25. 25. VISION STATEMENT To be among the Top 10 Global IT &Business Process Outsourcing Services
  26. 26. Wipro Technologies ofBangalore, India, was havingtrouble persuading Germancompanies to outsourceoffshore their chip and softwaredesign work to Wipro— until thecompany hired WalterOrtmueller...
  27. 27. Using a middleman “from thesame country generatesautomatic trust,” says Mr.Ortmueller, whose twenty yearsof contacts in theindustry now help him scoutand win clients for Wipro.
  28. 28. Outsourcing is finally beginningto crack the European market,once a staffing strategy wasadded of using a heavy sprinklingof local representatives from thesame cultural background as thetarget clients...
  29. 29. “Local presence was a must for thecustomers” in Europe, says SangitaSingh, Wipro’s chief marketingofficer. And she adds, Using localsalso provides “the cultural andlinguistic ties that make the clientssmile and helps us build strongerrelationships,”
  30. 30. Offshore outsourcing is growingdramatically in Europe, although stillbehind the U.S. pace due toEuropean labor laws that makerelocating jobs through offshoreoutsourcing a long and costlyprocess.To avoid layoffs, many Europeancompanies outsource only work andprojects that require new hiring...
  31. 31. When Mr. Debjit Chaudhuri first cameto Germany in 1999 to open anoutsourcing office for India’s InfosysTechnologies, Ltd., a Bangalore basedconsulting and IT services firm,German companies “didn’t know whatI was talking about,” he says. “Youneed to build confidence, trying tokeep it as German as possible, whilegiving you the benefits of outsourcing.”

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