Towards strategies for making offshore outsourcing economically and socially sustainable

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Work Organisation, Labour and Globalisation

Volume 2, Issue 1

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Towards strategies for making offshore outsourcing economically and socially sustainable

research-article

Author(s): Monique Ramioul , Tom De Bruyn

Publication date (Print): Spring 2008

Journal: Work Organisation, Labour and Globalisation

Publisher: Pluto Journals

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Abstract

This paper looks at the role trade unions and employee representatives can play in workplaces where offshoring and outsourcing projects are introduced. Starting with an overview of the literature on the employment impacts of offshore outsourcing, it highlights a strong contrast between the generally optimistic macro-economic studies focusing on the net effects, and the realities of offshore projects revealed through case studies, in which failure and mismanagement are common. It describes a situation in which increasing numbers of European trade unions, acknowledging that offshore outsourcing is ‘here to stay’, have reacted to this situation by developing a more pro-active approach to the introduction of outsourcing and offshoring which seeks to avoid the negative impacts on employees of failed or badly managed offshore outsourcing projects. Finally, the paper discusses the MOOS (Making Offshore Outsourcing Sustainable) project which exemplified this approach, aiming at contributing to a better informed and more effective role for employee representatives, to enable them to assess and influence the offshore outsourcing practices of their employers.

Content

Author and article information

Journal

Journal ID (doi): 10.13169

Journal ID (publisher-id): workorgalaboglob

Title: Work Organisation, Labour and Globalisation

Publisher: Pluto Journals

ISSN (Print): 1745641X

ISSN (Electronic): 17456428

Publication date (Print): Spring 2008

Volume: 2

Issue: 1

Pages: 117-132

Article

Publisher ID: workorgalaboglob.2.1.0117

DOI: 10.13169/workorgalaboglob.2.1.0117

SO-VID: 0be5f2eb-9e67-4ca9-b77e-4bc2219f6de5

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All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

History

ScienceOpen disciplines: Sociology,Labor law,Political science,Labor & Demographic economics,Political economics

References

Abramovsky, L., R. Griffith & M. Sako (2004) Offshoring of Business Services and its Impact on the UK Economy , AIM Research: Oxford
Bloch, L-K. (2005) ‘Offshoring creates jobs’, summary of the study Jobskabelse gennem globalisering, note provided for the MOOS project committee, Stockholm. June 2005
Cap Gemini (2005) ‘Outsourcing Pulse Survey’. Accessed on 18 April 2005 from http://www.capgemini.com/resources/news/outsourcing_survey_results/
Carmel, E. & P. Tjia (2005) Offshoring Information Technology. Sourcing and Outsourcing to a Global Workforce , Cambridge: Cambridge University Press
De Bruyn, T. & M. Ramioul (2006) Offshore Outsourcing. A Handbook for Employee Representatives and Trade Unionists , Geneva: UNI-IBITS
Dejonckheere J., M. Ramioul & G. Van Hootegem (2003) Jobs on the move - Benelux case studies in relocating eWork , Leuven: HIVA-Katholieke Universiteit Leuven
European Commission (2005a) The EU Economy Review. Rising International Economic Integration. Opportunities and Challenges , Brussels: European Commission
European Commission (2005b) ‘Summary Conclusions’, DG-ECFIN Workshop, The Effect of Relocation on Economic Activity: An EU Perspective, Brussels, 21 June 2005, ECFIN/E(2005) REP53517.
European Industrial Relations Observatory (2006) Relocation of Production and Industrial Relations . Accessed on 1 March 2007 from http://www.eiro.eurofound.ie/2005/11/study/tn0511101s.html
European Restructuring Monitor (2007). Accessed on 1 October, 2007 from http://www.eurofound.europa.eu/emcc/erm/index.php
Gartner (2005) ‘Gartner Says Companies Must Invest in New Skills and Staff to Benefit from the Move to Outsourcing. Shortage of Skills to Manage IT Outsourcing Partnerships Poses Critical Threat to European Business’, Gartner Press Release, 1 October 2003
Geurts K., L. Coppin & M. Ramioul (2007) ‘Tracing employment in business functions. A sectoral and occupational approach’, WORKS Project report D9.2 The transformation of work? Part 1. Accessed on 1 October 2007 from http://www.worksproject.be/Subgroup_2_proj_reports.htm
Gorter J., P. Tang & M. Toet (2005) Verplaatsing vanuit Nederland (Relocation from the Netherlands) , CPB document n° 76, Den Haag: Centraal Planbureau
Hirschfeld K. (2005) ‘IT professionals forum in India: organisation at a crossroad’, Berlin', Ref. 03–2005/0011, unpublished paper, Geneva: UNI
Huws U. et al. (2003) When work takes flight: final report of the EMERGENCE project , IES Report 397, Brighton: Institute for Employment Studies
Huws U., S. Dahlmann & J. Flecker (2004) Status Report on Outsourcing of ICT and Related Services in the EU , Dublin: European Foundation for the Improvement of Living and Working Conditions
Kelly J. (2005) ‘Labor Movement and Mobilization’, The Oxford Handbook of Work & Organization , Oxford: Oxford University Press:283–304
Kirkegaard, J.F. (2004) ‘Offshore Outsourcing - Much Ado About What’, CESifo Forum , Vol 2, No. 5:22–29
Kirchenhöfer S. & J. Flecker (2002) Jobs on the move: European case studies in relocating eWork , IES Research Report 386, Brighton: Institute for Employment Studies
Ministry of Economic Affairs the Netherlands (2005) Vision on Relocation, the nature, extent and effects of relocating business activities , Research Series, The Hague: Ministry of Economic Affairs OECD (2007) Staying competitive in the global economy. Moving up the value chain, OECD report, Paris: OECD
Rambøll Management (2005) ‘Opportunities and consequences of globalisation for the Danish labor market – A regional perspective’, unpublished paper, Copenhagen: Rambøll Management
Ramioul M., U. Huws & S. Kirschenhofer (2005) Offshore outsourcing of business services , Dublin: European Foundation for the Improvement of Living and Working Conditions - European Monitoring Center of Change
Ramioul M. (2004) ‘Delocalisatie in de informatie-economie, mogelijkheden en grenzen: illustraties van goede en slechte praktijken (Relocation in the information economy:illustrations from good and bad practices)’ in G. Van Hootegem & B. Cambré B (eds), Over Werkt(t) in de actieve welvaartstaat , Leuven: Acco:57–75
Ramioul M. (2007) ‘Global value chain restructuring and the employment relationship’, ISA Conference New challenges in work and employment, Montréal, 28–30 August 2007
Rohde G. (2005) ‘Opening Session’, First international MOOS conference , Paris, 10 February 2005
Robinson, M & R. Kalakota (2004) Offshore Outsourcing. Business Models, ROI and Best Practices, Alpharetta : Mivar Press
Sofres, T.N. (2003) Globalisation. Flash eurobarometer 151b Brussels: European Commission
Ter Beek H.M., H.S. Dekker, J.W.M. Mevissen & H.A. Weening (2005) Offshoring in de Nederlandse ICT: grenzeloze kansen (Offshoring in the Dutch ICT: opportunities without boundaries?) Research carried out by Regioplan Beleidsonderzoek commissioned by Raad voor Werk en Inkomen, Den Haag
TNS Opinion & Social (2005), Standard Eurobarometer 63 Spring 2005, Public opinion in the European Union, Brussels: European Commission
Van Welsum D. & G. Vickery (2004) Potential offshoring of ICT-intensive using occupations , Paris: OECD
Van Welsum D. & X. Reif (2006) The share of employment potentially affected by offshoring - An empirical investigation , Paris: OECD
World trade Organisation (2005) ‘Offshoring services: recent developments and prospects’, World trade Report 2005, Exploring the links between trade, standards and the WTO . Accessed on 15 February 2006 from http://www.wto.org/english/news_e/pres05_e/pr411_e.htm:265–302

Comments

Comment on this article

[1] Abramovsky, L., R. Griffith & M. Sako (2004) Offshoring of Business Services and its Impact on the UK Economy , AIM Research: Oxford

[2] Bloch, L-K. (2005) ‘Offshoring creates jobs’, summary of the study Jobskabelse gennem globalisering, note provided for the MOOS project committee, Stockholm. June 2005

[3] Cap Gemini (2005) ‘Outsourcing Pulse Survey’. Accessed on 18 April 2005 from http://www.capgemini.com/resources/news/outsourcing_survey_results/

[4] Carmel, E. & P. Tjia (2005) Offshoring Information Technology. Sourcing and Outsourcing to a Global Workforce , Cambridge: Cambridge University Press

[5] De Bruyn, T. & M. Ramioul (2006) Offshore Outsourcing. A Handbook for Employee Representatives and Trade Unionists , Geneva: UNI-IBITS

[6] Dejonckheere J., M. Ramioul & G. Van Hootegem (2003) Jobs on the move - Benelux case studies in relocating eWork , Leuven: HIVA-Katholieke Universiteit Leuven

[7] European Commission (2005a) The EU Economy Review. Rising International Economic Integration. Opportunities and Challenges , Brussels: European Commission

[8] European Commission (2005b) ‘Summary Conclusions’, DG-ECFIN Workshop, The Effect of Relocation on Economic Activity: An EU Perspective, Brussels, 21 June 2005, ECFIN/E(2005) REP53517.

[9] European Industrial Relations Observatory (2006) Relocation of Production and Industrial Relations . Accessed on 1 March 2007 from http://www.eiro.eurofound.ie/2005/11/study/tn0511101s.html

[10] European Restructuring Monitor (2007). Accessed on 1 October, 2007 from http://www.eurofound.europa.eu/emcc/erm/index.php

[11] Gartner (2005) ‘Gartner Says Companies Must Invest in New Skills and Staff to Benefit from the Move to Outsourcing. Shortage of Skills to Manage IT Outsourcing Partnerships Poses Critical Threat to European Business’, Gartner Press Release, 1 October 2003

[12] Geurts K., L. Coppin & M. Ramioul (2007) ‘Tracing employment in business functions. A sectoral and occupational approach’, WORKS Project report D9.2 The transformation of work? Part 1. Accessed on 1 October 2007 from http://www.worksproject.be/Subgroup_2_proj_reports.htm

[13] Gorter J., P. Tang & M. Toet (2005) Verplaatsing vanuit Nederland (Relocation from the Netherlands) , CPB document n° 76, Den Haag: Centraal Planbureau

[14] Hirschfeld K. (2005) ‘IT professionals forum in India: organisation at a crossroad’, Berlin', Ref. 03–2005/0011, unpublished paper, Geneva: UNI

[15] Huws U. et al. (2003) When work takes flight: final report of the EMERGENCE project , IES Report 397, Brighton: Institute for Employment Studies

[16] Huws U., S. Dahlmann & J. Flecker (2004) Status Report on Outsourcing of ICT and Related Services in the EU , Dublin: European Foundation for the Improvement of Living and Working Conditions

[17] Kelly J. (2005) ‘Labor Movement and Mobilization’, The Oxford Handbook of Work & Organization , Oxford: Oxford University Press:283–304

[18] Kirkegaard, J.F. (2004) ‘Offshore Outsourcing - Much Ado About What’, CESifo Forum , Vol 2, No. 5:22–29

[19] Kirchenhöfer S. & J. Flecker (2002) Jobs on the move: European case studies in relocating eWork , IES Research Report 386, Brighton: Institute for Employment Studies

[20] Ministry of Economic Affairs the Netherlands (2005) Vision on Relocation, the nature, extent and effects of relocating business activities , Research Series, The Hague: Ministry of Economic Affairs OECD (2007) Staying competitive in the global economy. Moving up the value chain, OECD report, Paris: OECD

[21] Rambøll Management (2005) ‘Opportunities and consequences of globalisation for the Danish labor market – A regional perspective’, unpublished paper, Copenhagen: Rambøll Management

[22] Ramioul M., U. Huws & S. Kirschenhofer (2005) Offshore outsourcing of business services , Dublin: European Foundation for the Improvement of Living and Working Conditions - European Monitoring Center of Change

[23] Ramioul M. (2004) ‘Delocalisatie in de informatie-economie, mogelijkheden en grenzen: illustraties van goede en slechte praktijken (Relocation in the information economy:illustrations from good and bad practices)’ in G. Van Hootegem & B. Cambré B (eds), Over Werkt(t) in de actieve welvaartstaat , Leuven: Acco:57–75

[24] Ramioul M. (2007) ‘Global value chain restructuring and the employment relationship’, ISA Conference New challenges in work and employment, Montréal, 28–30 August 2007

[25] Rohde G. (2005) ‘Opening Session’, First international MOOS conference , Paris, 10 February 2005

[26] Robinson, M & R. Kalakota (2004) Offshore Outsourcing. Business Models, ROI and Best Practices, Alpharetta : Mivar Press

[27] Sofres, T.N. (2003) Globalisation. Flash eurobarometer 151b Brussels: European Commission

[28] Ter Beek H.M., H.S. Dekker, J.W.M. Mevissen & H.A. Weening (2005) Offshoring in de Nederlandse ICT: grenzeloze kansen (Offshoring in the Dutch ICT: opportunities without boundaries?) Research carried out by Regioplan Beleidsonderzoek commissioned by Raad voor Werk en Inkomen, Den Haag

[29] TNS Opinion & Social (2005), Standard Eurobarometer 63 Spring 2005, Public opinion in the European Union, Brussels: European Commission

[30] Van Welsum D. & G. Vickery (2004) Potential offshoring of ICT-intensive using occupations , Paris: OECD

[31] Van Welsum D. & X. Reif (2006) The share of employment potentially affected by offshoring - An empirical investigation , Paris: OECD

[32] World trade Organisation (2005) ‘Offshoring services: recent developments and prospects’, World trade Report 2005, Exploring the links between trade, standards and the WTO . Accessed on 15 February 2006 from http://www.wto.org/english/news_e/pres05_e/pr411_e.htm:265–302