¶ … Foreign Operations of Google
The companies initially operate within the confines of their local economic systems, and they decide for global expansion when demands for their products and services significantly decrease in the home country. The information technology arena is an international industry by default, and, therefore, the companies do not have the option of thinking small, but they have to have big plans in order to ensure their survival in the global market (Barnes & Kaplinsky, 2000). The human resources in the industry of information technology are expensive, and they demand high salaries that put a nasty dent on the profitability of their employers. However, computer programmers, engineers, and web designers living in developing are usually suffering from unemployment, and they need handsome jobs in order to fight inflationary trends. They do not require hefty packages whereas, they reap greater financial benefits as they earn in dollars while, working for American companies, so their level of organizational commitment remains significant over the years. Additionally, citizens of developing nations such as Indians have accumulated fame by working hard in the field of information technology. Residents of developed economies grow lethargic because their survival does not come in question due to governmental support in case of unemployment. Indians, on the other side, spend the better part of their lives in ensuring constant money supply. The person of developing nation remains under consistent pressure of generating income because of his collective familial system. On average, an Indian is feeding four to five persons, and, therefore, he does not have any purpose other than earning in life. The information technology offers freedom to work from home, and employees do not have to travel while performing their jobs as well. The fiscal advantages are notable in the featured line of work.
The companies do not face issues in recruiting from emerging nations because of higher level of unemployment in the South...
The companies reap cost related advantages as well. Based on the whole discussion, one can directly infer that hiring from developing nations is an ideal strategic method of driving down the costs in information technology industry because the employees can work from local offices with a minimal level of training (Kolk & Rungi, 2012). They present low cost in terms of salaries as well and in the end, the company's profitability enhances. The challenges for developed nations' administrative system are growing because it has to cope with increasing number of IT professionals who are currently out of the job. The companies are replacing locals with foreigners who are capable of quality work less pays.
The current order of the world is causing humanistic and national philosophies to die out because economics has started to dictate developments in every aspect of human life. The need to fulfill self-interest governs human relations in the present time. Humans have become materialistic, and they need to develop in terms of financial power overnight (Dann & Haddow, 2008). The international companies are sending their fellowmen to unemployment in order to make extra bucks, but one can criticize recent socioeconomic developments, but he cannot deny their existence and growth, how they are changing lives.
International expansion is an inevitable strategic choice for the companies that have significant size of operations. The companies such as Google do have a need to acquire cost related benefits by outsourcing their services to developing nations of the world. The company needs to outsource activities to countries that must have a cheaper currency, but it must have an adequate level of technological infrastructure. The India has recently emerged as a leading internet user in the region of South Asia, and, therefore, the company does not require training the local employees a great deal. The Indian software engineers and web developers have gathered fame by enhancing their quality of work and productivity…
