| Global outsourcing has many benefits with cost | | | | considered entry-level (and compensated as such) in |
| reduction a frequent catalyst that causes firms to | | | | the U.S., but the employees in India are |
| examine offshore options. This introspection | | | | college-educated. All calls that need to be placed for |
| encourages many firms to first look at their | | | | further verification are routed back to the U.S. and |
| manufacturing locations and processes. While most | | | | made by the U.S.-based employees. This helps |
| types of manufacturing can be outsourced offshore, | | | | minimize any language biases and poor communication |
| service and software industries have also benefited | | | | between employers and applicants. |
| from offshore outsourcing. | | | | A huge bonus for the firm and their subcontractor is |
| One example of a non-manufacturing company to | | | | that the Indian CEO has experience with U.S. business |
| benefit from outsourcing is HireRight, Inc., a | | | | and economy which helps all parties to understand the |
| privately-held employment screening vendor | | | | issues. Even so, occasionally problems have come up |
| headquartered in Irvine, California. They have been able | | | | relating to production output quality and/or speed. This |
| to obtain greater output at a lower cost, thus | | | | requires renewed communication efforts and |
| significantly improving their financial position. | | | | renegotiated contracts, to keep output quotas and |
| They are one of the largest Internet-based | | | | quality standards in place. Sometimes, a penalty clause |
| independent screening providers focusing on | | | | is written in to help emphasize their expectations. |
| employment background screening. This includes drug | | | | Communication is a key factor in making outsourcing |
| and health screening, along with employment and | | | | work. |
| educational verifications as required by the customer | | | | Other issues with India have a great deal to do with |
| for large and mid-size organizations. Their customers | | | | the Indian culture. High turnover has been a problem |
| have offices around the globe including major markets | | | | with their subcontractor because most of the |
| in North America, Europe, Asia-Pacific and the Middle | | | | employees are women. This is related to the Indian |
| East, and selected markets in South America and | | | | culture where women live with their families until they |
| Africa. | | | | are married and then they rarely work. Adding to this |
| The main obstacles that needed to be addressed | | | | issue, the subcontractor works U.S. business hours, |
| revolve around language and communication, | | | | which is basically the middle-of-the-night in India. Indian |
| expectations of contracted work, and cultural | | | | families are uncomfortable with their daughters, wives, |
| differences, yet they have made outsourcing a | | | | and mothers commuting during those hours |
| significant part of their production solutions and is | | | | They believe that that reason why most of their |
| currently enjoying partnerships with Estonia, Russia and | | | | competitors do not outsource is due to the fear of the |
| India. | | | | unfamiliar. This could be the perceived lack of control, |
| They has a subsidiary in Estonia which does product | | | | cultural issues, fear of what customers will think, fear |
| testing and design. Moscow, Russia also produces | | | | of the unknown, and the cost of starting up an |
| modular components of the proprietary software to | | | | outsourcing program. Another reason that some |
| be used. For both locations, components of the | | | | companies don’t consider outsourcing relates to |
| software which are sensitive or security related are | | | | loyalty to the American worker. They fee that the |
| only produced or put together in the U.S. Therefore, | | | | American unemployment rate is at an all time low and |
| intellectual property is also kept within United States | | | | any displaced workers would certainly find work in the |
| borders. | | | | fast-growing retail sector. |
| India is where most of the outsourcing occurs, since | | | | This is a good example of a company that has found |
| they do the bulk of the background research. The | | | | great benefits in global outsourcing. Not only are they |
| selected vendor employs approximately 150 | | | | able to meet their customers’ needs of quality |
| employees dedicated specifically to HireRight, so there | | | | service a very competitive price, these outsourcing |
| is priority placed on the timeliness and quality of the | | | | partnerships are allowing them to conduct business |
| work. The type of work outsourced to India is | | | | and sell in over 200 countries. |