WITHDRAWN The Anti-Globalization Movement: How Outsourcing Has Become a Punishable Business Practice

• In Event: Globalization and Global Leadership: Progress and Pitfalls

Short Description

This research explores and analyzes how financial indicators, service quality, and service levels encourage leaders to outsource. It considers the challenges and consequences faced by leaders considering outsourcing and the impact of the anti-globalization movement.

Detailed Abstract

Abstract

The purpose of this qualitative paper is to research, understand and analyze the conditions in which Western companies outsource portions of their business operations to other countries, specially its information technology (IT), call center operations and manufactories, by this been said, the current globalization is facing new challenges in which leaders are going to be tested in many settings. This paper will examine the current global stage vs. leadership decisions when it comes to take an initiate to either outsource or face the challenges.

The biggest economy in the world The United States of America has started to face a new beginning of something called “anti-globalization”, in the current global stage starting with the United Kingdom to The United States a new strategy to help local economies has started to emerge. A new nationalist movement has started to focus on their local economies which now represents a direct threat to the globalization, trade agreements, wages and free markets (Kohler, 2004)

Business leaders of multinationals now in our days face a new dilemma, how to address the feeling that globalization and outsourcing destroys and take away jobs from local economies. Our initial perception of the literature and data rebels that companies in Western countries like the US sees many risks associate with outsourcing, however, saving cost associated with outsourcing is greater than the firm’s local reputation.

Conducting research and understanding this topic is very important, we can label this topic as urgent due to the circumstances that leaders now will be navigating in turbulent times.

Starting with India as a good example of a supplier of IT developers, analysts and call centers we can start saying that India is an industrialized nation which has not yet secured its spot and title, however, it has emerged as a powerhouse in the outsource industry, which makes India hold the number one spot in the world to outsource services (Kumar & Natarajan, 2011). It is thanks to the globalization of economies and markets around the globe that new ideas to increase productivity at a lower cost has been existing for years and has started to offer new ideas and options to businesses in different industries (Geishecker, 2008). The economic growth of the information technology (IT) industry in India is an example of the power of the globalization which in the case of India has been tremendous and significant; the country is now a true powerhouse in the outsourcing industry (Mathur & Khurana, 2014).

The missing element in recent research is that scholars and economist has not prepared to respond and recommend actions when is obvious that we are going through some turbulent times, the feeling of an anti-globalization continues to grow and threats directly the outsource industry which is seen sometimes as a “killer” of local jobs and a direct threat of workers in a given country.

The goal of this proposal is to explore, research and review the literature of how financial indicators, service quality and service levels influence leaders in organizations to outsource services and what are the new challenges that business leaders are facing now.

This research paper concentrate in understand the behavior of business leaders: First, how multinational’s leaders will face the new challenges and what actions help them to lead in turbulent times. Second, if outsourcing or withdraw from a market is an option what are the consequences and how you communicate and negotiate from the business leader perspective. Finally, is the perception of leaders focusing in financial results or they have a different goal?

To answer these questions, this study will use and gather information from recent research, news interviews, media and observation of behavior from multinational enterprises and global leaders. This research explores the perception of the phenomenon of outsourcing in many ways. First, it explores and defines why outsourcing has taken off in countries likes India and why is now a valid consideration for businesses around the globe, specially in Western nations. Second, how globalization has influenced business to consider outsourcing and has made it easy for companies to look for options(Sven,1999). Finally, how leaders see the current global stage and what actions, behavior or options they have when faced with an anti-globalization movement.

This proposal aims to further our knowledge on how decision makers such as CEOs, CFOs directors and vice-presidents makes decisions by evaluating their business position and goals. When it comes to outsourcing decisions are made taking inconsideration the good and bad aspects of outsourcing. For example, some of the present issues and concerns which have been discussed by researchers are the lack of training and cultural understanding in the outsourcing industry (Mathur & Khurana, 2014). Previously outsourcing was seen as a vital option for business to save money and obtain better qualify candidates at a lower pay rate.

Understanding and examine the process of outsourcing is one of the main focus of this paper, some of the more significant complaints perceived on the literature is that outsourcing can represent a vital line for some business, however, the cost could be significant to the brand and to the business overall (Peng, 2008). Outsourcing now faces more challenges besides the operational side, outsourcing now is seen as a punishable business behavior because hurts local economies and helps economies abroad.

Participant

• Alexis Naranjo, Indiana Tech