Running head: GLOBAL HUMAN RESOURCE MANAGEMENT CASE Global Human Resource Management In IT outsourcing is the seen as a controversial phenomenon in international business and has a significant effect on employment. Outsourcing is perceived as a strategy for cost cutting that enhances shareholder wealth (Baker & Reingold, 2004). But it outsourcing has raised concerns especially in the United States. With the fear that they Americans will lose jobs to foreigners, Lawmakers in the states are working on the issue of limiting tech services outsourcing. Advantages of Outsourcing To the multi-nationals there are cost advantages. There is access to cost effective services when they outsource to the global market such as India. A country such as India can offer the same level of quality as the US at a lower and this can be beneficial to the company. Also the companies can get access to the specialized services such as tech services that include programming and support. This enables the clients to cross-leverage the skills and expertise that comes with the technologies in the achievement of efficient and quality products. The government of India in particular has ranked information technology as they introduced an IT Task Force that promotes IT (Bakeri & Kripalan, 2004) . Again there is a benefit on time zones, outsourcing to a county such as India. Think of a client who is ordering a product today the client may receive the product the same day or the next day because there someone out there taking care of the sales. Outsourcing also gives the business competitive edge in the world market. As for the county where the companies are outsourcing their economy has risen and the unemployment rate is decreasing. Many US companies are outsourcing to India, and this is a direct investment to the host country. The economic growth has risen and an arena of employment created. In the developing world man-power is known to be in the maturing stage and the future look bright for these country. These countries are known for immerse talent and adjustability and for these reason the living standard for the people drastically improves. There are many smart people who are graduating with first class honors in the global world who can deliver high quality programs at a lower price. For this graduate they bypass working for the local companies and opt to work for the foreign giants such as Microsoft and Intel. Disadvantages of outsourcing To the companies there might be licensing and copyright issues and the projects that are outsourced can easily be copied and then sold to the competitors. This turns to be a serious issue in regard to copyright and licensing. Time is also lost when managing these projects. So much time is lost translating the client’s requirements to say an Indian programmer whose native language is not English (PassionComputing, 2011). Also there are higher chances of poor work because of failure in communication and differences in culture. Outsourcing may lead to lack of quality control and this calls for great trust as there might be variance with the programming quality. If a program is not written well it may be costly to patch or fix it. And finally entrusting critical national security such as banking and government system may be a problem. Such sensitive and confidential information should not be entrusted to just anyone. To the US or the country that are outsourcing, their graduates from Universities maybe rendered jobless or end up working for a low salary. This is because they are hungry and smart programmers in the distant world who are willing to work at very small fee. Imagine the graduates from US has spend so much money and time in the University thinking that he will land a job in Silicon Valley and end up working for a very small compensation because there is someone out there who is willing to work for a dismal compensation (PassionComputing, 2011). The graduate from India sees in reverse image of what the American graduates sees. In summation the IT corporate job has proven that there is competition from all over the world. And the approach to the traditional personnel management is becoming absolute as the business environment keeps changing and globalization has increased opportunities and the orientation of careers has changed (Kripalan el at, 2003). Outsourcing has forced the human resource management to change their overall strategies of hiring in relation to cutting costs and maintaining the same quality of work. With a keen eye of what comes with the outsourcing as many companies opt to outsource. Dell computers as an example have a troubleshooting call center in India. References Kripalan, 2004) (Kripalan el at, 2003)