PPP for Mgmt

1. Fundamentals of Offshore Outsourcing
and its affect on corporations
By Arteaa Brown

2.  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).

3.  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.

4.  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.

5.  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.

6.  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.

7.  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

8.  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