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    You have had discussions with your new boss (HR Manager) and the question has come up about how effective the off-shoring has been for the companies that have implemented off-shore operations. More specifically, what has been the human resources impact on those companies? Has off-shoring affected the company operationally, financially, or from a reputation perspective?

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    Has off-shoring affected the company operationally, financially, or from a reputation perspective?

    It has been effective for some companies that have off-shored their operations. An off-shoring operation has helped companies save time, effort, manpower, operating costs and training costs. This means the companies have been financially better of when they have off-shored their operations. One of the arguments that Off-shoring firms have given is that it enables their human resources to focus more on central business issues. In addition, Off-shoring has been effective because it gives firms access to professional, skilled, and superior-quality services. In global competition, Off-shoring enables firms to become more flexible. Further, the control over the business increases where there is Off-shoring. Off-shoring helps reduce operational costs, reduce risks, and free the cash flow of the firm. Further, if a process is off-shored, the firm avoids making large capital-expenditures.

    The human resource impact of Off-shoring was that jobs were being lost because of Off-shoring. Firms, closed their mills and factories as they shifted manufacturing operations to South and South-East Asian countries. The effect was increased unemployment and ...

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