Phase 1 Individual Project 1

By David Biggins

Phase 1 Individual Project

Student: David Biggins

Colorado Technical University

 Phase 1 Individual Project 2
By David Biggins

Abstract

In this assignment were ask to explain off shoring, how this affects the companies that will off
shoring. What kind of impact this will have on the companies HR departments. What the
company will deal with because of the off shoring in losing of American jobs. Will this affect
the companies operationally, financial, or from the reputation perspective. How I feel the
companies, HR departments have suffered because of the off shoring in America.
 Phase 1 Individual Project 3
By David Biggins

We are asking to give the definition and components of off shoring.

The definition of components of off shoring is to move or change a business function

from one country to another. Off shoring, often used in business to help reduce the overall

cost of making the product by moving part of the company to more favorable economic

conditions. This often done by selecting a place, and taken the equipment and knowhow and

sharing this with the people that will make the product (Web Finance, 2011). In addition, off

shoring is simply is having your item done in another country. Another reason is to enter a

new market or to be able to make a product there that has no regulations on how to make the

product in that country ( S o u r c i n g m a g . c o m , 2003-2011).

Off shoring is a much-debated subject between many people. On one side, they take

about worry about the drain on the American white-collar jobs. The other side however, says

that this needed to remain globally competitive. They also claim they are saving money to

invest back into research and development to help the American works by gaining new jobs.

Understanding this however, does nothing about the statistics of how much and how fast jobs

are moving overseas from off shoring. Since the 1990 the increase in jobs sent off shoring

has a steady incline however, this was only manufacturing. In addition, this has changed to

include from 2000-2015 estimated 288,000 management jobs, 472,000 computer jobs, 75,000

legal jobs and about 1.7 million office jobs ( D e s s l e r , 2011).

On the other side, which understands that there are real important reasons to off

shoring, one of the most important is saving money. The best way to save money is not

paying the employee to do the work this will help increase profits, because you are not pay

the employees you are buying the product. The next big advantage is with the loss of jobs
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By David Biggins

there is an increase in sales from the countries that we offshore too. This increase has given

way to more jobs in different sectors. The different countries we offshore are buying more

computer, telecom equipment and from more American companies meaning more work in

this job market. The next new trade for the 21 century is off shoring. Understand that there

has been an increase in other job loss; however, the increase in the other jobs will help offset

this (Still, Tom, 2009).

 Phase 1 Individual Project 5
By David Biggins

The next step is to give an understanding of what a company will go though when they

decide to use off shoring.

There is a positive and negative aspect to off shoring. The biggest problem will be to

have a good understanding of what you are getting into. You have had to make a plan and have

included all people to help make a fast and easy transition. Understanding this is the first step;

the next will be to have a real good idea of the process and realizing that just because it is not in

front of you. You have to realize that the “out of site out of mind” attitude is the worst idea for

you or your company. You have to keep track of the changes made and how well everything is

moving at what rate the products completed. The biggest problem is making sure everything is

moving the way you have planed and looking for ways to improve it is the next step. The

product must get to you by your due date and you must be on top of it when there are problems

that come up. If there is problems going on and nothing has done than you need to implement

your contingence plan so as not to lose your customers. The next item is the different cultures

that you have to import and deal with. There are many problems that you must face, one is if

the factory has been damage is another place that you have can use to still get the product on

time, or power failures. Having many companies doing the same thing and people migrating to

other places can have a huge impact on the security on the produces you are receiving from

them. There must be a full risk assessment before consider whether to continue or not ( J o h n

Monks, 2004).
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By David Biggins

The next thing we are discussing is the impact on the human resources department that

have implemented off shoring.

The biggest cost to HR departments is training, culture, communication differences.

Most HR people say that this is the biggest problems they face when the company is off

shoring. The easiest way that this will not happen is to include them in the early stages of the

consideration process. In addition, by looking at the cost to labor, workforce training, retention,

skills, language differences between the different people would help in understanding the cost

of everything ( K a r y n - S i o b h a n Robinson , 2004).

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By David Biggins

Implications on reduction of domestic jobs

One of the biggest is what it means to an organization to create the loss of jobs in its

company. They need to figure out what they are doing about their employees that are no longer

with them. They have to understand that they now need to make sure that they will continual to

move forward in there company. How are they looking from the American family standpoint,

are they going to continual to buy their products and services. They need to have a plan in

place to help the company have a good image with the American people. Many companies do

not have problems with jobs moving to offshore company, they say that this will improve the

job market here. They have stated that the people that are losing their jobs this will help the”

U.S. develop innovations that they believe is the countries strength” stated by Eric Groshen

assistant vice president of the Federal Reserve Bank of New York. Some believe that U.S

workers may be able to focus on the core of the company products. Jeff Lande, vice president

of IT Services say” that the battle over IT jobs from being offshore will not be won by

innovation and quality not wage.” (Grant Gross, 2003)

 Phase 1 Individual Project 8
By David Biggins

Influence on company (operationally, financially, or from reputation perspective)

Depending on the company, they could suffer at each of the aspects from off shoring.

We need to look further to understand how each one effect the bottom line. Looking at many

companies, they all seem to have problems however; some have more than the other does.

Looking at some of these we understand that in certain sectors there are more problems with

financially then with the reputation or the operationally. Understanding that there are many tax

laws that help in tax breaks for companies that off shore. This is one of the biggest reasons

companies off shore. Off shoring influences the financially aspect of business a great deal with

lower cost labor to tax breaks. The next is the operationally aspect of the off shoring process.

Many companies have to have a backup plan in place to not let it affect the productivity if there

suppliers go down due to weather of power failures. These many areas not only cost a lot of

money but also can put a stop to the operational of the company because of the lack of parts to

finish or call centers that do not have the ability to culture break down because of the lack of

education regarding how and what the company stands for. Having to spend money in order to

educate the people on how to listen and deal with customers from other countries is very

expensive however; this will help with the ability to communicate to the customers what they

need to be satisfied. Many companies loss reputation because of off shoring, this is because of

many reasons including job loss. Many people see that their lively hood is gone and may boy

cote them. I remember hearing that Hershey was moving to Mexico and they were closing the

company that is in Pennsylvania. I was out rage because they would save millions by doing this.

I am just one person and there were many people saying to stop buying their product. I can tell

you I still see that they are selling their candy at a lower rate. This can affect and company if

they are not very careful ( D e s s l e r , 2011).

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By David Biggins

Opinion on how off shoring has affected HRD’s in the United States

I fell after researching off shoring I have a better understanding of the aspect companies face

including the HR departments. Each company has to compete with their competitors and

whatever they are doing or going to do, they have to do to stay ahead of the curve. I can

understand why they must off shore jobs. I can also understand that they are still trying to create

different jobs for their American counter parts “most are anyway.” The Hr department has to

stay ahead of even the other levels of people over looking their department. They are even face

with getting their jobs out source to other countries. Understand that this will have an undesired

affect on them they must look ahead to try and balance that by making other cutbacks whether in

communications to call centers to even other department managers. Look to the future they have

a great deal to worry about then just doing their job.

 Phase 1 Individual Project 10
By David Biggins

Specific examples of at least two companies that have implemented off shoring

One company that I have research is IBM. They have off shored many times in their

history. They have also spent 1 billion year for over sea education and training (IBM

Corporate, 2002).

The next one is Hershey Corporation. They have closed two plants begin in 2009.

They have moved the peppermint plant to Monterey, Mexico. The next one is the kisses plant

however, they have not stated where they are moving it to (Luciew,John, 2009)

.
 Phase 1 Individual Project 11
By David Biggins

Reference

Dessler, Initials. (2011). A framework for human resource management [6th]. (Adobe

Digital Editions version), Retrieved from

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id=106_102_68_113_43_119_104_104_80

Grant Gross, Initials. (2003, December 11). 0share0share0 0share0share0share2share

December 11, 2003. Retrieved from http://www.infoworld.com/d/developer-

world/offshore-outsourcing-little-effect-us-jobs-260?page=0,0

IBM Corporate, Initials. (2002, May). Lessons learned ptf . Retrieved from http://www-

03.ibm.com/ibm/history/documents/pdf/gservices.pdf

John Monks, Initials. (2004, May 28). Off-shoring – a risky business?. Retrieved from

http://www.continuitycentral.com/feature091.htm

Karyn-Siobhan Robinson , Initials. (2004, May). Study: hr needs larger role in 'off

shoring'. Retrieved from

http://findarticles.com/p/articles/mi_m3495/is_5_49/ai_n6036860/

Luciew,John, Initials. (2009, february 20). Hershey plant in reading halts production .

Retrieved from

http://www.pennlive.com/midstate/index.ssf/2009/02/hershey_plant_in_reading_to_h

a.html

Sourcingmag.com, Initials. (2003-2011). Off shoring - what is off shoring?. Retrieved from

http://www.sourcingmag.com/content/what_is_offshoring.asp

Still, Tom, Initials. (2009, March 29). Advertisement. Retrieved from

http://wistechnology.com/articles/711/

Web Finance, Initials. (2011). off shoring. Retrieved from

http://www.investorwords.com/6600/offshoring.html