Question

Outsourcing and Offshoring have been hot topics in recent years.

In your opinion,

• What are typical HRM problems in offshoring organizations?
• How can companies, for example in India and China (or a country of your choice) design their human resource management systems to avoid these problems?

Answer 1

Offshoring refers to the technique or process in which one business typically moves its operations from one country to another to establish its business in that particular country as well. It helps is global diversification and growth for the organisation. Although HR Managers face a lot of problems and challenges from offshoring which are as follows:

1. language proficiency: One main problem which arises because of locating your organisation in another country is of the communication barriers. Different countries have different languages and cultures and they make it harder for the HR manager to effectively communicate the tasks allocated.

2. legal framework: Another challenge for the HR Manager is the legal framework of that particular country. What are the different employee laws, resource laws and other organisational duties and regularities which are essential for people that should be followed is again a big challenge.

3. data security and control: Controlling and planning for different organisations spread all over the globe is not an easy take. How effectively you set your standards and you control the resources to work which are not even in your country is a challenege itself.

Solution: I believe the solution for all that is the proper training and development programs that should be provided to all the employees irrespective of the fact of the country where the organisation in situated in. One uniform program should be designed for all which specifically talks about how effectively one should work and integrate its task so as the global objective could be achieved. Different importance of communication, languages, legal cultures and the importance of standards has to be communicated in such a manner where employees feel empowered and knowledgable to grow and develop essential skills for the progress of the company.