Off-Shoring

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The question has come up how effective has the off-shoring been for the companies that have implemented off-shoring operations? Specifically what has been the HR impact on those companies? Has off-shoring affected the company operationally, financially or from a reputation perspective?

Effectiveness of Off-Shoring in Operations:
Off-shoring operations have become platforms for achieving higher performance on many levels other than just lower operational costs. For instance, the call center representatives at ETelecare in the Philippines are one of the leaders in call center operations in Asia. It has won many awards in recognition for its quality of customer service. ETelecare has lowered the average handling time of a call by an average of 25% in contrast to the other outsourcing organizations used by the clients. ETelecare has also raised customer satisfaction. In fact, with one client alone, they exceeded the sales performance of the client's in-house facility in one week! By the end of the fourth week, the client was generating over three times the weekly sales per hour and had increased their conversion rate as well (Hagel, 2004).
Performance has also increased in the area of manufacturing operations. An example of this is most recognized in a U.S. electronics manufacturing company. This organization tripled their productivity due to moving their operations to China. The Chinese operation reduced cycle times through process optimization. This also helped to reduce defect rates and increase quality (Hagel, 2004).
HR Impact:
Off-shoring has led to an increase in training for HR professionals as they must keep fully abreast of all issues within not only their organization, but with the ...