Lenovo - Hr Off-Shoring Business Analysis

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Lenovo
Lenovo is a multinational company currently headquartered in Morrisville, North Carolina. They primarily create computers, servers and similar products. In December 2004, Lenovo purchased IBM. The primary focus on offshoring and outsourcing went to the IBM’s ThinkPad division. In 2007, Lenovo released plans to create an international global hub in India. This occurred due to the experience of India’s “Ogilvy & Mather’s” branch. The have had extensive experience building brands and were confident they could support Lenovo in India. Andrew Dahms of Lenovo (Australia-New Zealand HR Director) questions the need for offshoring (1). He points out that it was a huge trend in the 1980’s to 1990’s, but now he has noted that Lenovo has moved toward an international outsourcing strategy, that is closer to the customers (“World Sourcing”). Dahm’s branch at one point considered offshoring its service call centers, but decided not to after communicating with its customers. The customers in the country wanted to associate with local Lenovo employees. This fostered a growth with the consumer and the Chinese brand.

Lenovo’s R&D hub exists between China and the US through Japan. This strategically interacts with the marketing hub in India, administration hubs in China, and the R and D in Japan. The actual sales are responsible to the regional Lenovo branches around the world. Lenovo has opened a call center in Kuala Lumpur (Malaysia) to deal with customers in China (With reasons including the same time zone, and better talent). They are staffed with Lenovo workers, not an outsourced 3rd party. Lenovo’s strategic HR plans involve finding the best talent to work for them internationally, regardless of the actual cost of the location compared to another cheaper location.

Qiao (Gina) Jian, (Senior vice-president of HR) (2) Follows a “protect and attack” strategy. The dynamics involve protecting current markets and attacking future potential markets before they...
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