Outsourcing- using IBM, world's largest computer company regarding the practice of outsourcing and offshoring.

Essay by adeyinka June 2006

download word file, 18 pages 4.0


This work involves the use of the largest computer company in the world regarding the practice of outsourcing and offshoring; this paper tries to identify the ways in which the effectiveness of organizations can be influenced by human resource management, the relationship between organizational culture and human resource management. The principle elements in human resource management in developing the effectiveness of the organization is been evaluated and finally the analysis of major HRM problems arising in organizational change and methods of resolving them.

2. Introduction

Outsourcing is nothing new. Outsourcing of the manufacture of components has been practiced by the automobile industry for many years. Outsourcing strategies can also be observed in other branches such as telecommunications, ready-made clothing and financial services. This trend has been carried to an extreme in the case of off shoring; sending work and jobs to other countries where labour is cheaper. In some ways, it does make sense for organisation to manufacture, get or create their services outside their organisation or even country if the exercise helps them to cut cost and its profit orientated.

For decades, companies expanded their organisation by buying other companies. Initially, these companies buy related companies that are in the same line of business, often the suppliers of that business. Soon the companies began buying companies with no relation. These profit motives and the desire to be the biggest became sufficient motivation for acquisition. After a while, organisations began to collapse under the weight of the acquired companies. Profit started falling and companies began to retract to their "core" business because they could not cope with the demands of the acquired business which they know little or nothing about. Also the environment is becoming turbulent and very competitive, the dynamic nature of the market environment is making organisations...