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Outsourcing Case Study Essay

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In today’s global economy, having a workforce with international experience is crucial for companies to maintain their competitiveness. Currently, approximately 80% of all midsize and large firms send their professionals overseas for international assignments. Expatriate expenses may cost up to two or three times the amount that the employee with equivalent position may have back in their home country. The total expatriate package may cost up from $300,000 to $1 million dollars, depending on their location and their designation. For international assignments, professionals are usually given foreign posts for two reasons. First, is to generate and transfer knowledge. Second, to develop their global skills or do both. However, research shows that between 10%-20% of the U.S. managers that were sent overseas reported to have higher job dissatisfaction and found difficulty in assimilating into the foreign country. Of those that stayed in their position, one-third did not meet their work expectations set by their superiors. One-fourth of them completed their assignments but left the company to join other competitors one year after repatriation. This turnover rate is twice that of the managers who did not go abroad. The reason is because many executives seems to assume that the rules of business is the same in all countries. However, this is not the case. Hence, training need to be given to employees who are being posted overseas for them to be equipped with cross-cultural

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