Summarize the case and give your thoughts on MANAGING HR IN ‘OFFSHORING COUNTRIES’ The concept of…

Summarize the case and give your thoughts on MANAGING HR IN ‘OFFSHORING COUNTRIES’
The concept of offshoring and its strategic importance ‘Offshoring’ is an increasingly common term used to describe the outsourcing of business activities. Contemporary offshoring, also known as service offshoring, reflects the emergence of a global economy based on service and knowledge and epitomized by the concept of the call center. What has been of interest in advanced economies has been the increasing amount of high skilled work being offshored, which has created political, economic, employment and industrial relations tension in the home country. From an employment perspective, offshoring has been used to outsource work to contractors in countries where unionization is less developed and as such reduces the potential for disputes disrupting the production process. As such, industrial relations are transferred to a third party overseas, thereby side-stepping industrial agreement in higher wages/costs in the home countries and legal protection (as the Rana Plaza case above highlights). These countries often have very low wage rates as a further incentive to offshore. 88 Whereas the uptake of service offshoring has been rapid, the uptake occurred starting from a relatively low-base. Even given global economic irregularities, offshoring continues to be an important trend for reaching competitive advantage in the globalized economy. & In this section we will give special emphasis to the context of host countries, which are typical recipients for offshoring activities of MNEs. For these offshoring countries we will discuss HRM implications because this trend leads to a revolution in the global division of labor. New interfaces emerge that need to be managed.