Thesis: Off shoring
is recognized as a process whereby large business
companies with in the developed part of the world
enjoy operational and strategic benefits from
low-cost countries located in remote areas. However,
with the increasing trend of off shoring specifically
in IT, various employees are facing sudden job
loses. Where the root causes to various jobless
people is not the idea of off shoring but the
various strategies and policies regarding off
shoring. However, off shoring is principally practiced
in the filed of I.T. where Fairchild Semiconductors
Company is a classical example, which is discussed
in this paper as a major source that needs assessment.
Introduction
The very concept of expanding companies out side
the country is not a new one as it is in practice
since the emergence of globalization. Globalization
is basically related to free market economy, trade
liberalization, advancement in communication technology
and information technology revolution. However,
these new and advanced trends introduced by globalization
resulted into both positive as well as negative
implications. Amongst these both the developing
as well as the developed world are facing many
challenging issues. Where states being apart geographically
are politically, economically, socially as well
as technologically interrelated to each other.
Therefore, the world is now like a global village
and every other country is being affected by the
various economic, social as well as political
polices of another state.
Amongst the various debatable issues emerging
as a consequence of globalization, outsourcing
work into other countries rising to the stage
of off shoring employees is a very important issue
impacting the job sector of America, specifically
in the field of information technology. Therefore,
companies are expanding their business by setting
franchises in other countries and off shoring
employees.
However, off shoring is generally related to the
effectiveness of operational management as well
as strategies by which technological companies
develop innovate and advanced technologies and
software in low-cost labor areas. This helps them
developing a long-term competitive advantage with
minimum operational expenses at the same time
opening doors for employment in the developing
countries.
Therefore, the very concept of 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, off shoring is not only to facilitate
the employment gap but also to enjoy advantages
from the low cost labor force. It is quite obvious
that a company can save almost 50% of operational
expenses via off shoring employees as compared
to any call center in America. At the same time
many other factors also influence the people towards
off shoring, which include the various professional
gains like developing a work force that is at
the same time well educated and possess good English
conversational skills and a low turnover of employees
as well as some complimentary time zone .
So, all these factors influence 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.
Similarly many American manufacturing companies
and industries since long time ago have started
opening their call centers in developing countries
like the china, India, and other developing countries.
Consequently these countries earn tremendous economic
and social benefits and develop their infrastructure.
Therefore, it comes to our understanding that
globalization is very gradually bridging the gap
between the rich countries and the poor countries
specifically in the employment sector while leaving
many skilled as well as unskilled labors of the
American IT industry unemployed. On the other
hand, 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. Hence, the percentage
of jobless and educated people is increasing day
by day which is the most concerning issue of the
American government these days.
At the same time, the numbers of labors in the
lower cost countries are also increasing as the
practice of off shoring is increasing day by day.
With this new trend in developing countries are
initiating, which can also be an advantage for
the local business companies. For instance, as
the competition for talent and skills are increasing
immensely, the salary packages are also rising
with a more rapidly. On the other hand, the employees
are also recognizing their talents expertise in
various fields of information technology. These
features are motivating the 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.
Off Shoring And Fairchild Semiconductor Company
Basically Fairchild includes amongst the chief
international suppliers of semiconductor products
that are currently in power. These products includes
interface, analog, varied signals, logic, opt-o-electronic
as well as configurable products markets.
However, the various 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 are the significant elements that helped
the company earn so much recognition in the global
village. On the other hand, Fairchild Semiconductor
Company also guarantees 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 provides its employees
with opportunities to expertise in communication
technologies while working in a rapid and more
competent environment while consuming less power.
Off Shoring And The Program Strategy
Companies possessing a well-organized plan and
a calculated strategy achieve success in the world
of competition. At the same time, in order to
earn recognition and respect amongst the various
competitors, any corporation should develop strong
and influential motives and follow a certain plan.
However, the success of this leading Semiconductor
Company does not lie in its strategic planning
but its goals and objectives that includes to
supply an overwhelming performance to get hands
over multiple markets and by earning various strategic
achievements. Amongst the various strategic goals
of the company, developing new and innovative
products to satisfy the demand of new markets
is the most fascinating one.
Nonetheless, the upcoming professional students
and existing professionals in various US companies
are worried about the off shoring polices of the
companies like Fairchild Semiconductor Company
specifically in the field of information technology
as such companies are expanding their business
in other countries by opening new job opportunities
in international markets and discovering fresh
skills and dedicated work as the principle concern
of their new and innovative products.
Therefore, due to the very issue of sudden job
lose is directing new political, economical as
well as social debates as all these sectors are
interlinked to each other. For instance, an act
known as the WARN Act was introduced by the American
legislation, which principally to support the
labor community in such cases where the employees
face sudden loss in jobs and that influences their
social and economic condition. Therefore, this
Act secures 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.
Keeping in mind the triggering notices related
to off shoring, this act has amended with an introduction
of a new bill however, we do not find any clear
and transparent definition of off shoring and
various aspects related to the issues arising
due to off shoring. Though, employers are restricted
to transfer the employment positions and provide
various employment 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 of the employers. For instance,
shifting a certain percentage of American employees
to other countries when the company decides to
off shore employees in these developing countries
is now categorized as an important policy and
strategy. 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.
Plan And Purpose to Evaluate Despite the fact
that people generally appreciate the idea of off
shoring due to its various strategies to provide
new job opportunities in the field of information
technology, specifically in the developing countries
the national economic growth of America is also
increasing immensely.
However, various challenges regarding the impact
of off shoring the employees in relation to the
increasing ability of transition into new and
emerging professional careers are heating up the
debates related to off shoring and other issues
relating to job lose, which are not only attracting
the attention of American government but also
raising public opinion. Therefore, all these basic
job issues are also questioning the process of
job training and health insurance of the employees
impacted by off shoring.
Therefore,
it is suggested that companies should not only
develop certain polices regarding off shoring
employees, but also revise their policies from
time to time 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.
On the other hand, developing a certain level
setting 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
can also help coping the challenges resulting
out of off shoring. At the same time, political
stability of both the host country and the donor
country should be plays a vital role in encouraging
any business transaction between two countries,
while respecting the intellectual property rights
of various business contracts when conducting
various business collaborations and operations
is another important element that needs to be
taken as a priority of policy making.
Proposals Therefore, Fairchild Semiconductor Company
strongly needs to assess the off shoring process;
in order to secure the sudden job loses employees
due to off shoring. So evaluating various important
factors, here are few proposals that cant be suitable
for various business companies including Fairchild
Company.
First of all the criteria to evaluate the off
shoring process should be taken as a priority.
So 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 categorized is 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.
Where market maturity is one of the most significant
elements amongst the various market factors. This
includes easily reached work forces, the geographical
stability and risk management skills at the same
time winning governmental support. 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.
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