Fundamentals of Offshore Outsourcing and its affect on corporations By Arteaa Brown
Associates working in foreign countries for United States companies are practically not covered by U.S. employment laws, which cover such issues as sexual harassment, age discrimination and worker safety.(USA Today, 2006). Alternately, the workers are covered by employment laws of their own affiliate or country that U.S. labor officials deem not as strict. Legal experts believe that associates are less likely to bring sexual harassment or other claims in some countries merely because such employment claims are relatively rare. And those that are brought are apt to cost less than accusations or claims by U.S. associates. According to Suresh Gupta, at The Paaras Group, he believes employment laws are weaker and faint in other countries simply because of cultural tradition.(USA Today, 2006).
This is a issue that needs to be addressed in companies employing associates internationally simply because if discrimination is taking placed or being administered something needs to be done to abolish it. No one by any means should be treated unfairly or unjustly at any time rather it be intentionally or unintentionally, cultural or uncultured. Outsourcing internationally and not being aware or knowledgeable of the countries employment laws and practices implies that the company is inconsiderate and out for themselves. Addressing issues before hand such as benefits, discrimination, OSHA(working conditions for employees’, contracts,risks,unization, wages and workers compensation just to name a few are all considerations organizations should consider before outsourcing abroad.(HRO Today, 2009). Just because your recruiting a company to outsource the work does nor mean the employees’ should be treated less, unfairly or unjustly.
Decrease Wages- Employees’ working in other countries are paid less than employees’ in the states.(Crosby, 2012).The most importunate financial incentive to outsource operations is lower wages.(BillShrink,2009). Employees’ employed in third-world nations earn less than the average than employees’ working in the United States; right around $.60 and hour. Contractual Certainty- Offshore outsourcing additionally offers a peace of mind when contracts are entered into by the company and the outsource provider.(BillShrink,2009). Instead of being limited to dismissing or disciplining in effective associates in- house, outsourced providers can be made to compensate the company for its negligence, poor performance and failure to produce and complete the task.
Expeditious Time Market- By accessing employees’ who are already seasoned and trained and are ready to perform the task at hand, outsourcing can help companies release new products faster and quicker than if relied entirely on in-house talent.(BillShrink, 2009). Manufacturing Goods- Manufacturing raw materials from other countries to ensure quality and efficiency may also be less costly in other countries. Create more Jobs- Most big IT companies do much of their businesses overseas and actually want to have other associates involved in their markets.(Miller, 2004).Thus, gives other individuals a chance to be apart of a diverse organization.
Building a strong, cohesive and enduring relationship between the client organization and the outsourcing agency is an important factor in being knowledgeable of change within companies.(Dcosta,2011) Accessible communication ultimately ensures proper production, address cares and concerns, answers questions and strategically create new ideas and incentives.
BillShrink,(2009). 12 reasons Companies Outsource Overseas. Retrieved from http://www.billshrink.com/blog/6741/12-reasons- companies-outsource-operations-overseas/ Crosby,T.(2012). How Outsourcing Works. Retrieved from http://money.howstuffworks.com/outsourcing3.htm Dcosta, A.(2011). Bright Hub Inc. Retrieved from http://www.brighthub.com/office/project- management/articles/36283.aspx HRO Today(2009). Employment Law Outsourcing Checklist. Retrieved from http://www.hrtoday.com/content/1215/employment -law-outsourcing-checklist
Miller, M.(2004).The benefits of Offshore Outsourcing. Retrieved from http://www.pcmag.com/article2/0,2817,157 3729,00.asp USA Today, (2008). Retrieved from http://www.usatoday.com/money/world/200 4-03-22-labor_x.htm