HR Era,     Issue # 49,       May 10th, 2004
 

Sharing and Growing

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1. Outsourcing: Threat or Opportunity? - by Joan Marques

2. Moderator's Space

3. Tomato Soup for the Soul

4. HR Out-Sourcing - 'The First step towards abolition of HR Departments' - Sonia K. Nair

5. My Favorite Quotes - sent by Anand Sagun

6. More from HR Era Members

6.1  I Feel, therefore, I Am , Asima Sherali
6.2 ROI on IT Training , Rajat Agrawal
6.3 Stress of Managing Time , HR Era Member from Bangalore
6.4 So Blessed , sent by Poornima K.

7. Best HR Jobs (USA & India)

8. Training Programs (India)

9. Aims of HR Era, How to Contribute Articles.
 

Abstract:

In the past few months concerns about outsourcing have surged to truly vexing proportions in almost all sectors of the U.S. corporate world. While in the not so far past mainly lower level jobs were exported to countries offering low labor costs, today every profession is in jeopardy. A few suggestions for workers in countries that endure job losses through outsourcing are made.
 

Out-sourcing : Numbers and Extent

In the past few months concerns about outsourcing have surged to truly vexing proportions in almost all sectors of the U.S. corporate world. In a recent edition of the Wall street Journal, Maher (2004a) presents a statement by John McCarthy, vice president of Forrester Research Inc., who estimates that "as many as 588,000 U.S. white-collar jobs will be 'off-shored' by 2005 -- and a total of 1.6 million by 2010" (p. B1).

While in the not so far past mainly lower level jobs were exported to countries offering low labor costs, today every profession is in jeopardy, even the jobs of accountants, analysts, tax-professionals, architects, attorneys, radiologists, or technical writers, to name a few. The idea of telecommuting has expanded: the positive sound that this job flexibility tool used to have is not so positive anymore. Once upon a fairly recent time, telecommuting was perceived as a way to keep good workers active by accommodating them through working from home. However, this phenomenon has now expanded to a scale where workers don't just work from their home in the next street, neighborhood, or town, but in the next continent as well!

The Threat as perceived in the USA

The telecommuting shift has, thus, resulted in an elevation of the education levels of jobs that are crossing borders. So, what does the picture look like today? No matter whether you are a worker at the lowest echelon of an organization, or a top performer with an advanced degree, your job can be exported next year, next month, or even next week.

As soon as you find out that the U.S. company you work for has tested Bangalorian, Coimbatorian, or any other transcontinental waters, you can start counting down. And not even obtaining higher education will keep your job secure anymore! No wonder that more and more people get nervous about this whole trend: globalization was supposed to be a positive development, not a threatening one.

Wheel Turning Full Circle : History Repeats

Before offering some positive attitudinal suggestions regarding outsourcing, here is a point to ponder: long before this trend became a reason for concern in the industrialized world, globalization was a nightmare to the lesser-developed, smaller-scale producing countries of this world. For the longest time these countries were beleaguered by mass production from their industrialized "brothers and sisters," who could afford infinitely cheaper and larger scale production due to their massive and advanced setups. Becoming a partner in a regional trade community simply meant more prosperity for the prosperous, and more poverty for the poor. Borders had to be unlocked for giants who could now freely expand their state of the art services to neighbors who were still struggling with old-fashioned production processes and meager performance levels.

And now these "poor" countries are finally gradually emerging from their desolation: they offer their services on-location and through the Internet to corporations from industrialized countries, and obtain jobs at these corporations for a salary, considerably higher than what they used to get paid at home, yet significantly lower than what these corporations would pay to the workers in the industrialized home country! And that is what this entire outsourcing issue looks like from the other side of the mirror.

Some Suggestions for Workers in Developed Countries

So, now that this has been placed on the table, here are some suggestions for workers in countries that endure job losses through outsourcing:

* Polish up your entrepreneurial skills. Smaller, lean-and-mean operations will have longer endurance than mammoths with little or no flexibility. "Seek out new possibilities outside your company," suggests Maher (2004b, p. B8). This author refers to our human inventiveness by predicting that the offshoring of jobs will ultimately create new entrepreneurial opportunities. Maher cites Bharat Desai, chairman and chief executive of technology outsourcing company Syntel Inc., who declared, "The more repetitive jobs will go offshore, because it will be more cost effective and higher value to do that," (p. B8) This means that the less repetitive jobs will stay!

* Enlarge your horizons. Try to find out in what other industries than the one in which you are currently working your skills can be applied. Then, familiarize yourself with the wheelings and dealings of that industry, just in case…

* Engage in some in-depth self-exploration in order to find out what other work-preferences you have. Then, see what you can do to increase your capabilities in those other areas as well. The more diverse your skills, the greater your applicability in the rapid changing global work environment.

* Read! Listen! Surf the Net! Travel! Do everything you can to familiarize yourself with other environments than the one you are currently in. It may sound like an unrealistic, even silly suggestion, but think of all the people who have changed environments in the past for their betterment. If they could do it, you can too. If the world is becoming a global village, and we are all becoming "citizens of the world," we may as well get ourselves comfortable in our new, enlarged "home," right? Besides, even if you don’t want to go anywhere, it is always a plus to at least know what's going on out there.

Here are, at the end of this little contemplation, two positive notes to boost motivation:

1. Threats can be seen as opportunities. And people are generally known for their resilience in turbulent times. In a recent Fortune article the following statement was posted: "One of the greatest assets of America, so underestimated there but so attractive to outsiders, is the ability of the U.S. to compete and come out on top, yet to absorb periodic shocks. I don't feel America is going to lose its economic dominance in any manner" ("Outrage Over Outsourcing," 2004, p. 32).

2. Even outsourcing and the entire trend of globalization have their limitations. As Maher (2004a) puts it: "Geographic and cultural differences can make it hard for overseas workers to take over highly sophisticated jobs" (Maher, 2004a, p. B1).

In Conclusion

Whether we choose to perceive outsourcing as a threat or an opportunity depends on our mindset, our actions, and most of all: our approach. As one of the four noble truths in Buddha's teaching tells us, "As we are the ultimate cause of our difficulties, we are also the solution. We cannot change the things that happen to us, but we can change our responses" ("The four noble," 4).

References:

i] Anonymous. (2004, March 22). Outrage Over Outsourcing. Fortune, 149, 32.

ii] Maher, K. (2004a, March 23). Next on the Outsourcing List; Job Shift to Cheaper Countries Could Threaten More Careers: Analysts, Architects, Attorneys. The Wall Street Journal, pp. B1.

iii] Maher, K. (2004b, Mar. 23). What to Do if You Fear Your Job May Go Abroad. Wall Street Journal, pp. B8.

iv] Unknown. the four noble truths. FWBO.org. Retrieved on March 24, 2004, from http://www.fwbo.org/fournobletruths.html

Author: Joan Marques, Ed D.

Joan Marques emigrated from Suriname, South America, to California, U.S., in 1998. She holds a doctorate in Organizational Leadership, a Master’s in Business Administration, and is currently a university instructor in Business and Management in Burbank, California. You may visit her web sites at http://www.joanmarques.com  and http://www.spiritcounts.com . Article dated 26 Mar 2004.

Email: jmarques01@earthlink.net
 

Out-sourcing is an ir-reversible trend that has set in. Here are two articles on it.

Sonia K Nair is not in favor of HR out-sourcing. Joan Marques depicts the anxiety due to BPO [business process outsourcing] in USA and argues that it is part of economic change and talks about adjusting to it.

HR Era Members may send their comments on OUTSOURCING to Alka@HREra.com . We will consolidate the views and carry as a special issue of HR Era.
 

warm regards

Rajeev B Bhatnagar
Moderator

Rajeev@HRERa.com

PS: We have received many appreciations for the presentations uploaded at  http://geocities.com/hr_era . Alka conveys thanks to all. More than appreciations, we need more contributions from members to it. Specially members in training can help by sending in more PPTs.
 

3. Tomato Soup for the Soul - from the Net

Frying Pan

A guy is reading his paper when his wife walks up behind him and smacks him on the back of the head with a frying pan. He asks, "What was that for?"

She says, "I found a piece of paper in your pocket with 'Betty Sue' written on it."
He says, "Jeez, honey, remember last week when I went to the track? 'Betty Sue' was the name of the horse I went there to bet on." She shrugs and walks away.

Three days later he's reading his paper when she walks up behind him and smacks him on the back of the head again with the frying pan.

He asks, "What was that for?"

She answers, "Your horse called."
 

These days I have been reading and hearing a lot about HR outsourcing in India. What exactly is this HR Outsourcing? Is it yet another new concept aped from the West or are we shifting our basic HR responsibilities on someone else's shoulders? Or is it that we hire an expert to carry out jobs that fall outside our core competency?

Watch out, HR-outsourcing may be the beginning of 'abolition of HR Departments'. So think before you leap………..!

Yes, HR Managers Must focus on their Strategic Role

It's undoubtedly appreciable that HR professionals are playing the role of Strategic Partners these days, than just facilitators. HR Professionals are expected to know the nitty-gritty of business. All functions within business are interconnected and inter-dependant, rather than compartmentalized and independent, as in earlier times. The objectives of the Organization as a whole are in focus rather than just the internal HR activities. The HR higher up the ladder now focuses on the major issues of People Management in line with the Organizational Objectives rather than wasting time over trivial HR matters.

Out-Source to Get Better Expertise - Not to Economize

There are few HR specialists who understand that by Outsourcing the HR function, the Organization can only fix responsibilities but not accountability of the out-sourcing agency. I totally disagree with this view. While Out-sourcing an activity, an Organization must ensure that the activity is being taken care of in a much better and professional way than what the Organization itself could perform because that is the primary objective of outsourcing. If there is no accountability for the job out-sourced, the basic purpose of out-sourcing is wrong. Just reducing the economic cost must not be the sole purpose of out-sourcing. The basic purpose of out-sourcing must be to ensure that the best performance, quality, customer delight, and standards are maintained.

HR is Every Manager's Job:

It is amazing that few HR professionals feel it is difficult for HR Managers to be physically present at each scene and hence HR activities must be outsourced. I say that HR must be everybody's business in the Organization than just the HR Managers'. Each line manager must be capable of managing his Human assets and motivating and developing them. If we say that we need ten HR professionals to manage a large Organization, we sure are compartmentalizing HR and not permeating into the core business. Why do we see the HR function as the policeman regulating the 'Law and Order'?

Don't Out-source Just Because Others are Doing It:

There are innumerable examples of Organizations in India that have evolved innovative Management practices without aping the west for Management principles or guidelines. The best examples being the dabbawalas (or lunch-box-deliverers) of Bombay and the Lijjat Women's Association that started with the making of Lijjat pappad in Bombay.

HR must decide which function to outsource and to which vendor, especially when in India, there are not many professional vendors for the purpose, and whether the vendor is capable to handle complex HR systems. One must also understand the stability of such vendors in the market, whether tailored products / services are available as per the Company's specific needs. However, since outsourcing of HR functions like benefits, pensions, payroll, training etc. are in vogue, one must analyze the backlashes of outsourcing these functions which may lead to 'communication gap' between the HR and the Company's internal customers.

Focus on Right-Sizing the HR Team & Use Technology

Instead of out-sourcing the HR activities, I am sure if we focus on right-sizing the HR strength and instill in each employee the sense of Self-management and Team Management, motivate him enough to contribute his share towards better productivity, empower him to perform his best without exercising force, guiding him to manage his own score-card and performance graph, involve him in monitoring the business graph; there will be a time in India, when we shall be quoted as a nation practicing the right HRM, if not the best HRM. The HR professionals would then be able to focus on core issues of strategizing HRM.

Again, e-HR is a very lucrative system, wherein every employee of the Organization may manage / track information related to his service record, performance, development, opportunities, training needs etc.

Remain Connected with your Internal Customer:

Effective communication is the path towards sound employee relations. If functions like Recruitment, Performance Management, pay-roll, employee-counseling, training etc. are out-sourced; there is nothing more an HR professional can concentrate on. These activities are meant to be keeping an HR professional connected with the rest of the employees. These are the areas where the HR Manager remains in connection with the work-force. Hence, out-sourcing these activities may give rise to further alienation of the employees from the HR Managers.

Understand Your Needs & Environment and then Act:

The principles and practices of Human Resource Management need to be customized considerably in the Indian perspective; the Labour legislations need to be reviewed and amended with progressing times, promoting employment opportunities rather than pruning the same by imposing stringent laws.

It's high time the Indian HR Manager thinks to renovate HR practices, than ape the west to mechanize the HR activities like the other areas of business processes.


Author: Sonia K Nair

Sr. Manager - P&A, Gujarat Water Infrastructure Limited, Dr. Jivraj Mehta Bhavan, Sector 10, Gandhinagar - 382010
Gujarat. 16th Feb 2004

Email: soniaknair@hotmail.com
 

Asima says that down-sizing is not the right thing from any angle - human values, what managements profess (people are our greatest ...), company's long-term interest. She cites some research and a case in support. However, since we are passing thru a time where down-sizing is common practice let us not expects employees to be loyal. In the new employment contract between employers & employees, build multi-skilling in employees so that employees are well-prepared for layoffs & loss of their job.

I must add, Asima is very sensitive to human feelings and values. The way she can put them in words, very few, if any, can. Destined to be a great writer one day. This article she sent when she was working in New York.

6.2 ROI on IT Training , Rajat Agrawal

Details the benefits of training to organizations as well as employees. And mentions Rajat's company (Whizlabs) which has started providing online IT training.

6.3 Stress of Managing Time , HR Era Member from Bangalore

Tells how new technology has increased stress and the importance of values over money. To reduce stress the most important thing is to see professional goals as a means to our emotional goals - i.e. having our priorities right.

[Author of this article may kindly email us. I am sorry because the particulars were lost when my outlook account  crashed. ]

6.4 So Blessed , sent by Poornima K.

Hi,

This is an article I got from one of my friends. It has occupied a prominent post on my notice-board since that day. Any time I feel pressurized or depressed, all I do is read through this article once and immediately I would feel so much better. I share this with the other readers of HR Era and help them find peace within themselves.

Regards,

Poornima Kuttikrishnan
Poornima_K@suth.com , 26 Mar 2004

Head of Human Resources, Client of Teten Recruiting, New York

Summary

Would you like to build out a formal HR department for one of New York’s fastest growing companies? Work with a talented team to build an industry leader?

Our client is a private, extremely rapidly growing, New York-based professional services firm. This position is available immediately. Our client has very high standards in hiring, and that is particularly true for the HR role.

Title

HEAD OF HUMAN RESOURCES

Compensation

Approximately $80K+bonus. Generous benefits package. Relocation expenses will not be paid.

Reports to

Group Controller (US) and Senior Vice President, Operations Support (India)

Responsibilities

Responsible for all HR functions for about 120 people in the company’s New York headquarters, from hourly workers to senior management. Based in NY headquarters. No significant travel.

Qualifications

5-15 years experience. Manager-level. Experience in recruiting, designing compensation plans / benefit programs. Demonstrated experience in staffing at all levels. Familiar with employment rights and laws, staff development / review, training,, etc. Some client interaction. Background in professional services, outsourcing firm, and/or financial services helpful. Strongly prefer local candidates.

Include in resume or cover letter

- recent salary history and expectations;

- confirmation that you are eligible to work in the USA;

- evidence of writing/communication/editing skills; and

- the years during which you worked for each full-time position that you have held and for each university where you studied (so that we can verify attendance).

How to Apply

Contact via e-mail only; do not call. Save your resume in Microsoft Word format with the name “Last Name_First Name_Year.doc”, e.g., “Lopez_Jennifer_2004.doc”. Please make sure that you include all of the information that we request above, or we will not be able to consider your application.

Please send resume and cover letter to Resumes2@Teten.com with “Head of HR-11” and your name in the subject line. For example, write “Head of HR-11-Lopez Jennifer”.

Teten Executive Recruiting ( www.Teten.com )

Asst Vice President-Training, Tata Aig, Mumbai
Manager- Training, Tata Aig, Mumbai

For AVP: MBA(HR/MKTG). 10 yrs + exp in defining the training strategy and iimplementation in an SBU. Service industry

For Manager-Training: MBA(HR/MKTG). 5-8 yrs exp in both soft skills as well as sales training & OD initiatives

Reply Back to: recruitmenthhelpdesk@tata-aig.com

Regards

Amol R Gupta

Office No : 56933929

HR Executive, Company in Retail Business, Bangalore

Currently having an opening of HR Executive. Details are given below.Interested candidates kindly forward your cv at ethos@mail15.com / ethoscon@hotmail.com / ethos@roltanet.com

HR Executive
Company : Retail Business
Exp : 2 to 3 years MBA / PGDHR
Job Profile : General HR, Recruitment, compensation Appraisal, Induction, etc
Salary : 10,000 pm
Location : Bangalore

Ethos Consulting
(IT Placement Consultant)
Unit No. 11, Gokul Apartment,
Near Farooq High School,
S.V. Road, Jogeshwari (W)
Mumbai - 400 102

Tel: (022) 2678 5797 / 2679 8027

Email: ethos@mail15.com / ethoscon@hotmail.com / ethos@roltanet.com

Workshop Fee:
For  Single Nomination        : Rs. 3500/- per participant
For Groups of Three or more : Rs. 3200/- per participant.

For more Details Contact : B.Nandini  ( Ph:  080-23436406, 23549645, 51244291 )
or visit www.ihrd.net for online registration.
 

Aims of HR Era:
It aims to enhance CAREER GROWTH of its readers by bringing to them practices & ideas they can apply in their work, opportunities to network with other Professionals, training opportunities, jobs available, and techniques for self-management.

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