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Globalization and Its Impact on IT Human Resources

April 10, 2009

Globalization has changed the way we do business.  The flow of information, money, goods, services and cultural capital across national boundaries has made the world market a much more dynamic place.  Globalization is often directly linked to information technology (IT).  Advances in our technological capabilities, of course, are largely what made globalization possible in the first place.  Decreased costs of communication plus instantaneous exchange of information has allowed businesses all around the world to increase their productivity.  As one person put it: “Together, globalization and IT crush time and space”. 

Globalization has a significant impact on Human Resources.  Suddenly employers can hire people halfway around the world without ever meeting them face-to-face.  An IT technician living in India or Eastern Europe can get a job with a first rate American or European corporation.  While people fear that offshore recruitment may reduce jobs back home, there are several tangible benefits to the globalization of human resources for both the home office and the remote worker. 

From the employer’s perspective, globalization leads to an increase in the competitiveness of the market, which in turn leads to an increase in the quality of the work produced.  The employer’s freedom to search globally for IT engineers means that he or she is more likely to find the right person for the job.  The outsourcing of certain IT services can also improve the efficiency of the home office.  Hospitals, for example, often function more efficiently and serve their community better when workers in the hospital do not have to deal with the hospital’s IT needs.  Instead they can focus their energies where it really matters: on innovative and reliable health care.  Finally, an executive’s ability to cut costs by using a remote workforce leaves him with more capital to invest into other areas of the business.  

From the IT freelancer’s prospective, remote work makes it possible to work flexible hours, part time, or on a project by project basis.  This is especially beneficial for women, students or the elderly who need a source of income but are unable to work fulltime business hours.  Offshore employment also enables skilled, hi-tech workers from all around the world to have access to jobs that they were trained to do.  Often people graduating from universities in Ukraine or India with degrees in computer science or engineering have received training more suitable to American and European businesses’ needs than American or European graduates. 



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