Human resource management--Should U.S. companies use offshore Essay

Human resource management--Should U.S. companies use offshore locations to enjoy lower wage rates Are there ethical issues or concerns about employee morale t - Essay Example Outsourcing in the field of Information Technology is nothing new as in recent years it has changed shape several times to reflect new, and arguably better-planned, organizational objectives. And best practices for creating contracts are now evolving that promise to move outsourcing from a road often pockmarked with potholes and lawsuit-bound to a more reliable relationship for both provider and customer. There has been a general perception that outsourcing means taking jobs away from a region, particularly if we talk about the US. From a financial standpoint, the debate regarding the United States businesses spreading into offshore locations is more pertinent than anything else within the lengths and breadths of the nation since financial health has ensured decent composition of an economically secure nation and US is sure to thrive on the same premise. (Hom, 2005) What remains to be seen is to realize that US authorities could do a lot more than raising the offshore locations’ cutting down on wage rates since they need to understand the bigger picture and forget about the short term incentives, if any, they have in sight. The US businesses would suffer immensely due to the high offshore costs in terms of the employee insurance and the like since it would encourage outsourcing of jobs which would have been easily completed had the individuals been given the offshore guarantees, coming from the US land alone. Much needs to be done in the relevant context and that too quickly. (Domberger, 1998) As far as US is concerned, this could be made appropriate if the offshore policies and strategies are proportionate with the policies that have been laid down time and again within the US. What this means is that the laws that allow for the effective handling of employees as well as the workers within the US need to be followed so that the top management understands what is best for them and how they can contribute in