Marketing Outsourc

ing

“Critically examine the added value to an organization of pursuing a business strategy of offshoring to India, analysing the HRM (Human Resources Management) implications of doing so”

Abstract

Offshoring is a modern issue and it involves Managers of all functions. In particular, Human Resource Managers have dealt with the aspect of talent pool that is vital in offshoring. This paper examines offshoring, its advantages and disadvantages; it makes specific reference to India as one of key offshoring players. It also refers to the HR implications that companies will face when they pursue offshoring.

Offshoring is a relationship between a business and an external provider that is contractually bound. This relationship has become extremely popular in many business activities. Offshoring when it is combined with reengineering or a shared-services model give additional value to the changing business environment. The current global financial crisis has affected the whole business system including the off shoring industry. The companies have as primary goal to achieve cost efficiencies, increase productivity and performance, motivate employees and make them more engaged and invest in innovation. There is a great expectation from the companies on the role that HR will play in order to support the above mentioned areas.

Introduction

Offshoring has been a modern trend in business management. Offshoring is actually outsourcing that crosses national boundaries. It means giving some business functions previously done inside the organization in another country. The organization has to focus on its core competencies and skills and outsource the other important functions to companies located in another countries. The example of Nike is very characteristic. Nike preferred to focus on marketing and product design since these are the sectors that it believes they are its core competencies and outsource production to other countries.

There has been a long discussion...