Friday, July 01, 2005

taking sides (part 2)

i was talking to a colleague from our US office and he just mentioned about the reduction in workforce that had started there at his office on that day...
i knew that it was a very sensitive matter and i just didn't know how to react, what to say. i did tell him that in my personal opinion it is very unfair and it should not be the way things should be going. i couldn't say anything more than that but i couldn't stop thinking about that.

after this, i was discussing with a couple of people here at my office as well.
this business model is not good at all. i think it is the problem with most of the well established MNCs who had already grown to a great extent and then started outsourcing their jobs. they hadn't planned for globalization when they started and they didn't plan for it when they were growing. now, they are left with no choice but to layoff. this kind of a set up would disturb the relationship between the two teams working for the same project at different locations. i don't understand how a business can grow if these two teams compete with each other rather than working in collaboration.

however, this is not the case with the MNCs that are startups as they would have planned for globalization from day one, would hire appropriate number of people at different locations and wouldn't get into a situation where in they have to reduce their workforce at one parlicular location to cut the costs. i think this business model is quite fair when compared to the earlier one.

also there is another model where in the company would be registered at a particular location and the marketing happens from there but the development would take place at different location to cut the costs again. i don't really think i am in favor of this one as well.