OffshoringatGlobalInfoSystempaper
Offshoring at Global Information Systems, Inc.
Company Background
As 2004 began Jane Harding who was the senior vice president for Human Resources in the Global Services Division (GSD) of Global Information Systems, Inc. (GIS) was considering an offshore proposal to shift 3,000 jobs from United States to China, India and Brazil. These were highly compensated job positions. GSD makes up almost half of GIS its earnings in 2003 accounted for $90 billion. A major portion of GSD’s business came from customers outsourcing their business process needs. GSD started to look into alternative ways to cut out costs and improve performance by “offshoring” certain activities in order to present the most appealing value proposition to the potential customers (Offshoring at Global Information Systems, Inc).
This case examines the issue of offshoring high-tech jobs different perspectives. The topics covered in this case include; consequences of non-competitive offshoring, stock price effects of offshoring, economic consequences of offshore work for both transmitting and receiving countries, and challenge of investing in a career that is vulnerable to future offshoring.
The Competition
GSD has several other competitors which are multinational firms and are doing the same thing as they are. Other major firms include Accenture, Ltd., Electronic Data Systems Corp., Siemens, Computer Sciences Corp., and Petro Systems just to name a few. But the significant competition to all businesses is offshoring to different parts of the world. All of these companies are looking to control the market, reduce costs, and make savings. The competition is very competitive. If so many other companies are doing the same thing how can one company stand out and attract customers to buy from them. In this case the location comes into the picture and where it is cheaper to find skilled people and cheap labor. Many of these workers in the developing world especially in China and India who are as well
Company Background
As 2004 began Jane Harding who was the senior vice president for Human Resources in the Global Services Division (GSD) of Global Information Systems, Inc. (GIS) was considering an offshore proposal to shift 3,000 jobs from United States to China, India and Brazil. These were highly compensated job positions. GSD makes up almost half of GIS its earnings in 2003 accounted for $90 billion. A major portion of GSD’s business came from customers outsourcing their business process needs. GSD started to look into alternative ways to cut out costs and improve performance by “offshoring” certain activities in order to present the most appealing value proposition to the potential customers (Offshoring at Global Information Systems, Inc).
This case examines the issue of offshoring high-tech jobs different perspectives. The topics covered in this case include; consequences of non-competitive offshoring, stock price effects of offshoring, economic consequences of offshore work for both transmitting and receiving countries, and challenge of investing in a career that is vulnerable to future offshoring.
The Competition
GSD has several other competitors which are multinational firms and are doing the same thing as they are. Other major firms include Accenture, Ltd., Electronic Data Systems Corp., Siemens, Computer Sciences Corp., and Petro Systems just to name a few. But the significant competition to all businesses is offshoring to different parts of the world. All of these companies are looking to control the market, reduce costs, and make savings. The competition is very competitive. If so many other companies are doing the same thing how can one company stand out and attract customers to buy from them. In this case the location comes into the picture and where it is cheaper to find skilled people and cheap labor. Many of these workers in the developing world especially in China and India who are as well