The paper "Cultural Elements That Affect Offshoring" is a worthy example of an assignment on management. With the penetration of information technology in all areas of the lives of people all over the world, the world has become a global village with cultures moving closer together and ideas being exchanged across borders. It is because of this globalization and the emergence of Chinese, Japanese, European, and other third world multinationals that companies face tougher competition. Culture and offshoring are inseparable as discussed in this document, highlighting the various cultural elements that affect offshoring and are crucial to the profitability and survival of a business. Background information about offshoring Offshoring and outsourcing are initiatives taken to reduce the cost of production or business operations.
Some of the reasons behind outsourcing and offshoring include the existence of high minimum wages in the countries where the businesses are set up and high operation costs in relation to licenses and other legal formalities required of the business. Whereas all countries in the world have requirements for running various businesses, the specific requirements range from country to country.
The requirements range from corporate social responsibility to the rights of the human resources and environmental considerations for industries. The level of strict observance of such requirements also ranges from one place to the other. The minimum wages in India, for example, are much lower as compared t the minimum wages for in European countries. As a result, most manufacturing industries have the tendency to move their companies to India to reduce manufacturing costs by cutting down on labor and other operational costs. Metters (2008) affirms the existence of high-profile blunders and failures as a result of the lack of cultural integration and other cultural barriers in the business.
There is a constant increase in the number of companies that operate internationally to increase profitability, expand the brand, and reduce costs. The culture ranges from manners, keeping time, and communicating using a language familiar to the new market. cites communication and cross-border issues as some of the most important cultural factors affecting offshoring among businesses and large companies.
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