Rural Outsourcing
Case: Rural Outsourcing.
1) Do you think that small businesses in the United States can compete successfully against subcontractors in lower-wage countries such as India and China? Explain.
- Yes, I do believe that small businesses in the United States can compete successfully against subcontractors in lower-wage countries. I believe this because many outsourcing companies located in the United States have reported double and triple revenue growth in the past few years. Workers in India and China are demanding higher wages and costs are increasing, so right now it may benefit to stay a small business in the United States.
2) If you were an executive of a large U.S. firm and were contemplating subcontractors with an overseas firm or small business in the United States (such as the ones described in the case), what human resource factors would you take into account to make a sound decision? Explain.
- The human resource factors that I would take into account to make a sound decision would be, culture, education, economic systems, and political-legal systems. Culture is very important because it can greatly affect a country’s laws because laws are based on the culture’s definitions of right and wrong. Culture also influences people’s values, which can affect people’s economic systems. Educational opportunities vary from country to country. Spending on education is greater in high-income countries than in poorer countries, poverty and diseases in poor countries can keep children away from school. Economic systems influence human resource management in many ways. Different pay structures could complicate when they cross national boundaries. A country’s political-legal system strongly affects HRM. The country’s laws often dictate the requirements for certain HRM practices, such as training, compensation, hiring, firing, and layoffs. Laws and regulations also reflect cultural values. Where to locate is also a factor because HR needs to consider the cost
1) Do you think that small businesses in the United States can compete successfully against subcontractors in lower-wage countries such as India and China? Explain.
- Yes, I do believe that small businesses in the United States can compete successfully against subcontractors in lower-wage countries. I believe this because many outsourcing companies located in the United States have reported double and triple revenue growth in the past few years. Workers in India and China are demanding higher wages and costs are increasing, so right now it may benefit to stay a small business in the United States.
2) If you were an executive of a large U.S. firm and were contemplating subcontractors with an overseas firm or small business in the United States (such as the ones described in the case), what human resource factors would you take into account to make a sound decision? Explain.
- The human resource factors that I would take into account to make a sound decision would be, culture, education, economic systems, and political-legal systems. Culture is very important because it can greatly affect a country’s laws because laws are based on the culture’s definitions of right and wrong. Culture also influences people’s values, which can affect people’s economic systems. Educational opportunities vary from country to country. Spending on education is greater in high-income countries than in poorer countries, poverty and diseases in poor countries can keep children away from school. Economic systems influence human resource management in many ways. Different pay structures could complicate when they cross national boundaries. A country’s political-legal system strongly affects HRM. The country’s laws often dictate the requirements for certain HRM practices, such as training, compensation, hiring, firing, and layoffs. Laws and regulations also reflect cultural values. Where to locate is also a factor because HR needs to consider the cost