IBM Government Programs

Movement of service providers

- Intra Company Transfers

Jolanta Jaworska
Government Programs Executive
IBM Poland
Geneva, September 22, 2008

| © 2008 IBM Corporation

 IBM’s Global Services Presence
Application Services Business Transformation Services Strategic Outsourcing

Poland Czech China

Canada UK SlovakiaRep.
France

Ireland
Portugal
USA Okinawa
Venezuela
Mexico

Costa Rica Spain Philippines

India
Peru Hungary
Romania
Brazil
Argentina Australia
South Africa New Zealand

IBM Services are delivered seamlessly through our standard worldwide delivery methodology involving over
200,000 skilled professionals across multiple countries. This business model requires frequent movement of
resources across country barriers for both business travel as well as long and short term assignments. In
turn, this creates a dependency on the respective country’s authorities and practices.

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Facts about movement of workforce

 Movement of workforce in a globally operating company is a part of daily

operations
 Growing employees willigness and ability to find a jobs far from home land
 Talent goes where talent is needed
 Internal company job posting is part of the culture and principles
 The opportrunities for temporary foreign assignment are the form of
company recognition and retention programs
 Sending high potentials abroad to gain experience of another culture and
working styles, sometimes is mandatory if they aspiring to the executive
role,
 Lower barriers for mobilty lead to less permanent immigration in the long
term ( eg, Irish and now Polish case),
 Complementary role of mobile skills (with technical, industry and other
"horizontal" expertise) to address gaps in local skills with intimate market
and customer knowledge

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IBM inbound and outbound assignee models
 Inbound Assignee model ( from developed economies to growing)
 Development opportunities in a high growth market like Asia, Eastern
Europe,South America
 Provide leadership in selected areas, and „groom” future leaders
 More than 60% of assignees are accompanied by spouses
 Around 40% of inbound assignees are accompanied by children
 Coming mainly from USA, Europe, Australia - aproximately 200 yearly

Outbound Assignee Model ( from growing economies to developed)

 Global Development Opportunities for future leaders from growth
countries
 Program Managers or technical professionals working on global delivery
projects
Transition work – short term assignments
Onsite team members – longer term assignments
 Going to Europe and USA – aprox 2000 yearly

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The main barriers and restrictions faced by companies
in relation to the admission of ICTs are as follows:
 Admission Criteria / Definition of ICTs ( qualifications, salary level, labour
market test)
 Application Process (Separate Documents – Work Permit, Visa & Residence
Permit :
Processing Time
Process
Fees
Supporting Documents
Validity
Renewal Process

 Scope of Work Permit - for individual countries,

Specific Regions
Client Limitation
Visa Restrictions

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Inbound International assignees challenges
long visa and work permitt processing time – 3 months and up , same
applies to renevals. Additional cost & impacts frequent business travelers.
Foreign Regional Registration Office’s Requirement of presence of young
children for registration
complex process for visa registration, requirement for plenty of company
legalized certificates
and outbound International assignees challenges
 minimum compensation tresholds, authorities requesting IBM Pay slip
minimum salary, vs. local country salary components and assignment
provisions
 requirement for legalization of assignees certificates
(birth/marriage/educational/police) from the place they were issued.
 strict submission (2x/year) & processing dates (6 months) results in lengthy
lead times for obtaining Work permits.
Long lead times in processing Foreign Tax Credits, and no communication
regarding completion of assessments.
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Recommendations that would support business development and
economic growth

 Enable reform of regulation through simplification, which increases

job mobility
 Provide a regulatory proposals that allows business to grow and
operate in a timely and cost-effective manner.
 Promote & support knowledge based economy - right skills in the
right place at the right time,
 Draw on technological skills rather than low wages - encourage
private investment in R&D and skills development,
 Avoid barriers to businesses embracing a global enterprise model
that allows deployment of skills and other assets globally and in the
most competitive way
 Promote mobility and flexibility of workforce,

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