The importance of Human Resources department in any company can directly influence how the personnel will work together in a single harmonious productivity values. In line with this aspect, the HR team should always find ways to acquire great talent pools and dependable characters of individuals to become a part of the organization through outsourcing, enabling the company to take care of other business matters (Wisegeek). For the company Ingram Micro, there are special human resources segments which demand outsourcing procedures.
Because of the global expansion of the company in technology product distributorship, there is always a need to settle representatives of the company in various regions around the globe. In such approach, Ingram Micro can sustain a longer business operation by targeting different markets for growth. The human resources office of Ingram Micro initiated the outsourcing procedure in the customer service sector of the company. Satellite offices in the Philippines and India were established as offices for customer service agents who will contribute to the growing client base of the company.
Another segment of the organization which had an outsourcing process was in the sales department. Sales agents were hired from the offshore countries mentioned to fill in positions related to corporate selling of the products. Basically, the main goal of the HR team is to increase the exposure level of the company to all market domains especially in Asia where an increase in IT product demand has been observed. This approach will let Ingram Micro become an expert in all kinds of markets to complement its leadership in North American and Europe.
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On a personal note, it was a good decision for Ingram Micro’s HR team to outsource a portion of its employee requirement. In today’s globalization perspective, the international markets are becoming more and more compact which means companies need to identify the quality of markets from offshore territories (Arat, 2005). The HR team took a big step in doing so by establishing the presence of satellite offices in foreign courtiers. This let Ingram Micro to expand more in terms of direct sales activities outside of the domestic market.
Another good reason why the HR department should outsource even more is the fact that labor rates are very cheap outside of the United States (Offshoring. com, 2006). The rates in India and the Philippines are about 75% cheaper than employing a US based individual in the same position capacity of sales representative and customer service. This will allow Ingram Micro to save more on investments without compromising the trade feasibility with its customers. One last benefit in outsourcing is the fact that a company will be able to increase its labor market range by tapping previously unrealized skills outside of its domestic domain.
By recruiting people from foreign lands, Ingram Micro is now able to customize its products and service offerings to cater to the different tastes of the customers. Primarily, the outsourced laborers become the most effective testing factors to study whether Ingram Micro’s products will boost sales in the specific market territory. A capitalist’s outlook towards profitability may be realized by looking at opportunities outside of his traditional market. For the human resources sector, outsourcing may just be the right step in order to achieve practical expansion of the business procedure.
However, it is very important to first study the general outlook of the market where outsourcing will be done to maximize profit margins.
- Arat, Z. 2005. Human Rights and Globalization: Is the Shrinking World Expanding Rights? University of Denver. Retrieved February 1, 2008 from http://www. du. edu/gsis/hrhw/volumes/2005/arat-2005. pdf.
- Offshoring. com. 2006. Filipino Employee Raises Economic Prospects. Offshoring. com. Retrieved February 1, 2008 from http://www. offshoring. com/article32. html.
- Wisegeek. N. D. What is Outsourcing? Wisegeek. Retrieved February 1, 2008 from http://www. wisegeek. com/what-is-outsourcing. htm.
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