Sobey 1

Charles sobey
Habte Woldu
IMS 3310.004
12/5/2015
Outsourcing
Due to ever increasing market competition in the world, companies have moved to find
new ways to cut cost. The most successful and controversial of these is the increase in
offshoring. Many groups blame offshoring for the loss of jobs in their countries especially
western ones. Not only this but activist groups as well put them under fire with accusations of
unsafe and terrible work environments. However this is not the whole picture. most companies
that offshore say that it is a necessity if they are to stay competitive. But there are ways to make
both sides satisfied and allow globalization continue.

To fully understand the problem, it is important to know what exactly is offshoring and
why companies do it and why many groups are so against it. As discussed in a paper by Kyle
Eischen offshoring is not a new idea it has been happening for decades. This is due to the fact
that it is becoming ever easier to do business in other countries. This allows them to lower cost
and make their products cheaper to their consumer base. They also provide jobs in the areas
that they set up their new manufacturing plants in. However humanitarian groups say that the
working condition and pay for these people is terrible and must be stopped. But the companies
say that they can't compete if they don't do this and the developing countries that host these
companies also say that there influence is having a good effect. Many of these countries say
that it develops infrastructure and provides higher paying jobs than they would have been able
to get. These two polarized sides make it difficult to see what should been done.

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While this is a complicated subject there are things that can be done to help minimize
the negatives that both sides see. One thing that needs to be changed is how companies set up
their operations. While the housing they create is not up to western standards the real problem
is that they create other things as well. This includes shops and stores that are all owned by the
company. this makes paying them almost pointless and should be stopped. Companies would
be allowed to continue their offshoring allowing them to keep costs low and stay competitive.
This lets those workers keep the money there are making now.

This would appeal to both parties without question. for the humanitarians they would see
an increase in the standard of living of those people. Also with the development of these
countries and an increase in wages as seen in china. Companies would be happy because they
are allowed to continue the way they wanted to with cheaper labor but would not be allowed to
Truly exploit some areas like they have been doing.

While both sides have good arguments for and against offshoring they are both to
extreme. By compromising you are able to help continue the trend of globalization with less
exploitation of the less developed areas. And in turn allow them to grow and develop at a
quicker pace

Bibliography

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Grossman, Gene, and Esteban Rossi-Hansberg.

"Trading Tasks: A Simple Theory of Offshoring." Print.

Westner, Markus, and Susanne Strahringer.

"Determinants of Success in IS Offshoring Projects: Results from an
Empirical Study of German Companies." Information & Management: 29199. Print.

Eischen, Kyle. "Working Through Outsourcing:

Software Practice, Industry Organization and Industry Evolution in India."

EScholarship. 13 Mar. 2004. Web. 5 Dec. 2015.

"Reshoring Bringing Back Jobs to USA." Zacks

Investment Research. 4 Feb. 2013. Web. 3 Dec. 2015.

Kane, Tim, Brett Schaefer, and Alison Fraser. "Myths

and Realities: The False Crisis of Outsourcing." The Heritage Foundation.
Web. 3 Dec. 2015.

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Charles sobey
Habte Woldu
IMS 3310.004
12/5/2015
International HR
People in all their endeavors try to grow and reach new heights and this could not be
more apparent than in global market. With ever connecting world, many companies have spread
past there home or host countries to expand into other areas. This has led to the development
of many different styles of management, each with their pros and cons. These include
ethnocentrism, polycentrism, regiocentric and geocentric. While there is no perfect solution each
of these have reasons why they would be used depending on the company.

The 1st of these is ethnocentrism, which is the view where the area that the company
originated in is superior. This allows for a simpler structure and the ability to communicate more
easily. However talented members in the foreign countries will leave to to being unable to
advance causing a drain in caliber. This would be best suited for companies that focus in areas
such as mining or anything they need to be taken in large quantities from other nations. This is
because they are not giving much to the nation they are operating in and could develop ill will
from the people there.

They next one is polycentrism. This is a less hands on approach by the home country.
They allow the subsidiaries to be run by the people of the host country that are more aware of
what their national market needs. This allows for better marketing and pricing, thus driving up

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sales. However this damages coordination between the different subsidiaries, inefficient use of
home country experience and other things as well. This would be best used in trying to sell
consumer products in different nations.

The following one, regiocentric, is the most mixed of any of the approaches. it is defined
in alanpedia as An approach which manages subsidiaries on a regional rather than stand alone
basis and is a cross between an ethnocentric and a polycentric approach. This means that the
host country allows more freedom than in ethnocentric but has less division than in a polycentric
view. This allows for more coordination but at the same time the ability to develop higher skilled
people by allowing them move up. This is useful in areas with similar cultura like in europe.

The final one geosentric. Companies that use this have a far more global view than in
the others. They have better coordination and employee quality. Use better resources due to
their depth. Which increase quality and profits. While it has many pros it as equally as many
costs. These include high travel and communication cost along with slow decision making and
many others. This would be best used by companies that want universal standards and what to
be a unified entity on the world stage.

There are many different approaches to what companies should do when they go
abroad. While none of them are the perfect approach they are geared to different ways of doing
business. This allows them to manage in ways they see that fit their objectives .

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Bibliography

"Regiocentric." Regiocentric. Web. 4 Dec. 2015.

"Ethnocentrism." Merriam-Webster. Merriam-Webster. Web. 3

Batjargal, Bat, Michael A. Hitt, Anne S. Tsui, Jean-Luc Arregle,

Dec. 2015.
Justin Webb, and Toyah Miller. "Institutional Polycentrism, Entrepreneurss Social
Networks, and New Venture Growth." SSRN Electronic Journal SSRN Journal
(2012). Web. 4 Dec. 2015.
"EPG Model." Wikipedia. Wikimedia Foundation. Web. 3 Dec.
2015.