HR issues key challenge for Offshore Outsourcing
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HR issues - key challenge for Offshore Outsourcing Wednesday, February 23 2005 19:18 Hrs (IST) - World Time -
Bangalore: neoIT, the leading offshore advisory and management firm, has published a new white paper that examines the common challenges faced by offshore captive centres. The newest in neoIT popular white paper series, breastled 'HR Challenges with Captive Centres', addresses the HR challenges faced in both setting up captive offshore centres and achieving efficient operations.
According to the company release, while most global sourcing engagements tend to go to third-party suppliers, many organizations maintain wholly owned subsidiaries abroad for business processing and information technology services. Known as "captive" centres, these corporate delivery centres offer many advantages over third-party outsourcing, particularly when confidentiality is a major issue.
However, captive offshore centres can present unique human resources management challenges, requiring different management strategies and policies, the release said.
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"For successful management off offshore captive centres, HR must develop policies and practices that are highly flexible in order to adapt not only to local Government labour codes but also to recognize cultural and stylistic differences," said neoIT managing partner, Avinash Vashistha.
"Most importantly, recognizing and adapting to cultural differences can improve communications, productivity, quality and integration with the entire corporate organization."
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The 'HR Challenges with Captive Centres' white paper identifies the following seven areas that must be addressed for successful management of global resources and the overlaps between onshore and offshore operations: cultural, organizational structure, market positioning, training & development, recruiting, compensation & benefits and retention.
The study goes on to examine the issues and resulting problems that can arise when these issues are not properly addressed, the release added.
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