| Globalization
has changed the traditional trends of international
relations. Presently every state is concerned
about economic and technological development while
increasing communication with modernization and
advancement. Therefore, states have now entered
into a global village where each state is directly
or indirectly related to each other. Moreover,
among the various challenges born out of globalization,
employment issues specifically white color jobs
stand amongst the most important issues of today.
Where economic globalization has introduced new
and innovative business and marketing techniques
at the same time it also introduced concepts like
free market economy and trade liberalization thus,
it is resulting into both positive and negative
repercussions. On the positive sides, states are
discovering new markets and expanding their markets
by the adopting the policy of regional economic
integration and at the same time entering into
various international trade agreements. On the
other hand, not only the local market of these
business giant countries are being effected but
also the rate of unemployment is increasing massively
with new challenges like off shoring programs
of various business companies in America specifically
related to the field of Information technology.
Though off shoring is not a bad idea but it needs
to be practiced under a certain plan and well
organized strategies where the employees and labor
both can learn the advantages and disadvantages
while following certain principles in relation
to off shoring. Therefore, the most important
and fundamental issue concerning in this regard
is a strategic program, which can deal with off
shoring of employees specifically those employees
that are impacted by decision. Yet, there are
many more challenges in this regard that will
be discussed in this paper. However, prior to
discuss and analyze the various issues related
to off shoring, one needs to understand the basic
concept of off shoring.
However, the very concept of off shoring is generally
misunderstood and confused by various technological
companies and employees related to the same field.
Therefore, off shoring refers the operational
effectiveness and management strategy whereby
technological companies while creating new and
innovative software in remote areas can earn long-term
competitive advantages, with cheaper operational
expenses at the same time providing job opportunities
in developing countries.
Basically off shoring is related to enjoying
benefits and advantages of lower-cost labor in
another country. In this process the employees
are basically handed over to some third-party
sellers or vendors and at times are remained in
house. However, the very concept of off shoring
refers to such organization, which develop certain
enthusiastic and committed captive centers that
are personally owned by them. Where such centers
are generally build in remote and lower cost areas.
Therefore, the basic idea behind the strategy
of off shoring is not only an effort to bridge
the unemployment gap but also to earn benefit
from the low cost employees. For instance, a company
can save around 50% operational expenses if off
shore employees as compared to the U.S call center.
However, there are many other reasons that attract
people towards off shoring, which includes many
benefits like hiring employees which are well
conversant in English language and possess a certain
standard of educated labor team, a low turnover
of employees as well as some complimentary time
zone . Therefore, all these elements are an influential
source for the people. For instance, American
companies open their call centers in countries
like India and Pakistan where not only they earn
a lot of advantage from the cheap labor but also
save a lot of operational expenses. At the same
time, the lower cost labor in these developing
countries provide the American based companies
with their full potential and expertise and dedication,
as they are earning satisfactory amount as compared
to their local companies by working in a high
class business environment with in the country.
Therefore, globalization in a way is very slowly
bridging the gap between have and have not specifically
in the employment sector while leaving many skilled
as well as unskilled labors of the American IT
industry unemployed. However, America it self
is gradually suffering from the negative repercussions
of globalization. Though America and other developed
countries of the world are earning a lot of capital
and are getting technologically advanced, but
with the increasing influx of off shoring employees
with in other countries is diminishing the scope
of the local employees specifically for the future
professionals. Therefore, slowly and gradually
the rate of unemployment is feared to increase
with the passage of time.
On the other hand, as the practice of off shoring
is increasing day by day the number of labors
in the lower cost countries are also increasing.
With this new trends in developing countries are
initiating, which can also be a benefit for the
local business companies. For instance, as the
competition for talent and skills are heating
up, the salary packages are also rising with a
faster rate. At the same time employees are recognizing
their talents and technical as well as other skills.
This factor is motivating these low cost labors
to switch jobs very rapidly, due to the attraction
of increased salaries and better working environment.
Therefore, all the above factors are affecting
the benefits of off shoring. Consequently, the
developing countries are earning healthy opportunities
to build their infrastructure due to the blessings
of globalization.
Fairchild Semiconductor International and Off
Shoring
Fairchild is basically one of the chief global
suppliers of semiconductor products that are currently
in power, which includes products like interface,
analog, varied signals, logic, opt-o-electronic
as well as configurable products markets. However,
the company has earned recognition due to its
innovative products with an extraordinary focus
on creative skills in management, altering and
converting as well as minimizing and distributing
power specifically in the developing world. Therefore,
Fairchild Semiconductor Company ensures an easy
access to the portable technologies acquiring
very high and influential performance of not only
consumers but also industrial and computer technologies
of this era of modernization and technological
advancement towards the developing edge of the
globe. Moreover, it also ensures expertise in
communication technologies while working in a
rapid and more competent environment at the same
time consuming less power.
Program Strategy of Off Shoring
The basic goal and strategy of this leading Semiconductor
Company is to supply an extraordinary performance
to acquire multiple markets by making various
strategic achievements. At the same time, the
strategy of the company also focuses on developing
new and innovative products satisfying the demand
of the new markets. However, the new professional
students and prevailing professionals in America
are disturbed about the off shoring polices of
the companies like Fairchild Semiconductor Company
as they are opening new opportunities in international
markets exploring new skills and dedicated work
forces for their new and innovative products.
Consequently, the emerging challenge of the job
loss debate is initiating a political, legal and
economic debate in America. For instance, the
American legislation has long time ago introduced
an act known as the WARN Act, which is basically
to support the labor community in case of sudden
loss in jobs, which impact the social and economic
condition of these employees. Therefore, this
Act safeguards the basic rights of employees for
sudden loss of jobs by making it important to
give a 60 days notice prior to decide a jab loss
for any specific employee.
Though, American legislation under this act has
added a new category to the WARN Act regarding
the triggering notices related to off shoring
jobs but there is no clear and transparent definition
provided in this bill. However, it is held important
for the employers to transfer the employment positions
and provide various facilities to the employees
that are being terminated from their jobs. At
the same time, the off shorings of employees that
are impacted by the decision are also protected
by certain limitations to the employers. For instance,
it has been made an important policy and strategy
to shift a certain percentage of American employees
to other countries when the company decides to
off shore employees in these developing countries.
Therefore, companies possessing capacity for global
operations are changing their strategies by creating
new job opportunities along off shoring employees.
So companies like Fairchild Semiconductor are
side by side providing job facilities out side
America however, there is no authentic security
to the association of the discontinued jobs in
America specifically in remote areas.
Evaluation Purpose And Plan
Though off shoring is very much appreciated by
the people due to its various strategies to bridge
the employment gap specifically in the developing
countries and at the same time increasing the
national economic growth of America. However,
there are many challenges regarding the impact
of off shoring on the employees in relation to
the increasing ability of transition into new
and emerging professional careers as well as job
opportunities. Moreover, all these basic job issues
are also questioning the process of job training
and health insurance of the employees impacted
by off shoring.
Therefore, the company should not only develop
certain polices in this regard but also keep on
revising their policies with in a specific time
period especially when they decide to relocate
certain job services over seas. At the same time
companies should also revise their policies in
consideration of the expertise and skills of the
employees while off shoring with specific relation
to management and language skills in these remote
areas.
However, there should be a well-calculated level
to set the skills of the labor forces along the
cost of labor while keeping in mind the consistency
of the very infrastructure of the remote country.
On the other hand, the political stability of
both the host country and the donor country should
be given importance, while respecting the intellectual
property rights of various business contracts
while conducting various business collaborations
and operations.
Proposals
Since there is a strong need to assess the off
shoring process, here are few proposals that can
suit not only Fairchild semiconductor company
but also other companies working with the same
strategies and economic goals. Therefore, there
should be a specific process to evaluate the criteria
of suitability, which will prove best if further
divided into three areas. Amongst one area should
be the functional area that deals with the data
entry of the accounts and finance. Another important
area should be categorized as the company and
market factors that play a vital role in promoting
a business company. Therefore, the company should
also focus on the various competitive aspects
at the same time assessing the potential benefits
from the competitions. However, these competitive
benefits can be achieved from various sources,
which include the global process of standardization,
risk management, and client management as well
as the willingness of organizational changes.
On the other hand amongst the various market
factors the most important one is the contemporary
market maturity, which includes accessible labors,
the geographical stability and risk management
skills along the support of the government. However,
all these factors vary from state to state depending
upon the geographical factors along the quality
of labors and the nature of work as well as depending
upon the market demand in that very country. Therefore,
Fairchild Semiconductor Company as well as other
companies of the same kind should be very much
well calculated while formulating its strategies
and policies in relation to off shoring. |