Managing Across Borders: Impacts of Globalisation, Knowledge for International Managers, and Contribution of Outsourcing and Off-shoring

This paper discusses the impacts of globalisation on the business world, knowledge that international managers must possess to stay ahead of the game, and the contribution of outsourcing and off-shoring to globalisation. It elaborates on the identification of impacts of globalisation in current business world and on the knowledge of globalisation which international managers are supposed to possess to stay ahead of the game. Furthermore, the paper would also focus on the identification of the way the practise of outsourcing and off shoring are contributing to globalisation by using an example of a company’s case study to identify the barriers and opportunities present for its due to the increase in globalisation.

Running head: MANAGING ACROSS BORDERS
Managing Across Borders
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Impacts of globalisation in the business world............................................................................4
Knowledge that international managers must possess to stay ahead of the game.......................6
Contribution of outsourcing and off-shoring to globalisation.....................................................8
Conclusion.....................................................................................................................................10
References:....................................................................................................................................12

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Introduction
The phenomenon of globalisation is considered to be the primary force that shaped the
contemporary world through influencing the business and the society. In the business
environment, the process of globalisation influenced near about everything. Globalisation in
business context refers to the integration of the strategies, operations and the processes of a
company into the variety of products, services and ideas (Boyden, 2015). Every consumer and
the sippliers including the corporation all over the globe are linked with each other though means
of materials, capital flows and information since the global production has become highly
distributed and dispersed around different countries. The origin of globalisation is considered to
be in the modern period by many researchers and scholars. However, there are also scholars who
argued against this belief stating that this process has a long history describing the incidents of
trade links in between the Indus Valley Civilisation and Sumerian Civilisation. Globalisation is
considered to be triggered by the present period where maximum of the innovation and
development took place in the fields of business connectivity with the other parts of the world
with a rapid pace (Karlsson, Cornett & Wallin, 2018). This has resulted in the growth of sharing
of the ideas, tradition and culture among different countries. Also, there is a great increase in the
emergence of trade links among different nations which further influenced the national and
international economies. This paper is going to elaborate on the identification of impacts of
globalisation in current business world and on the knowledge of globalisation which
international managers are supposed to possess to stay ahead of the game. Furthermore, the paper
would also focus on the identification of the way the practise of outsourcing and off shoring are

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contributing to globalisation by using an example of a company’s case study to identify the
barriers and opportunities present for its due to the increase in globalisation.
Discussion
Impacts of globalisation in the business world
Globalisation has led to a significant increase in competition among different business
corporations and is the result of more number of foreign investments flowing to the nations and
de regulations as they allow the businesses to enter into the markets from which they once
precluded (Kraakman & Hansmann, 2017). The extensive business growth among different
companies has compelled the international brands to improve the quality of their products and
services as well as the consumer benefits which are regarded to be constructively influencing
many businesses in global level. There are numerous globally oriented firms that have attained
the assistance of science and technologies in order to exploit the opportunities present for them
in the businesses environment. For example, in present globalised world, there is a notable
increase in the use of E-commerce in the businesses. Technology is the primary tool in the field
of competition and the product and service quality. Globalisation has helped in increasing the
speed of the technological transfer and the net technological quality (Saranga, Schotter &
Mudambi, 2018). Also, this phenomenon of globalisation has created greater awareness about a
company in several different nations. Customers all over the world have become very selective
on essentials such as price, quality and service. Furthermore, globalisation has also aided in the
increase of employment level in the world. Due to globalisation, there is an emergence of various
new companies and this in turn has open up job opportunities for a wide number of people. There
are numerous jobs available in the current world that attracts diverse talents. It is also to mention

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that it is because of globalisation that there is an increased in mergers and joint ventures all
around the globe among different companies. It in turn is allowing access to bigger markets and
the related cost advantages.
Globalisation is helping a lot to the developed and the developing countries but for the
poorer and underdeveloped ones, the process of globalisation is considered to be a destructive
one. The strong and the developed countries are exploiting the under developed nations on the
name of business sharing. The process of power reallocation is taking place in the form of
industrial and technological competition. Globalisation has helped the rich countries in
developing technology in a fast rate and because of the advanced technological usage; labour has
reduced to a significant number and the unskilled labours have lost their jobs (Stockhammer,
2017). Although using the capital intensive technology has reduced the cost of production, most
of the advantages were retained like increased profit by the manufacturers. Furthermore, in order
to globalise their economies, there are many countries that have opened their market for their
foreign companies to enter. This is limiting the opportunities for the domestic companies to
make a stand in their own nation. As the competition has increased, there is an increase in the
entry of new companies in the business market. As because the domestic companies could not
compete with the international firm, they tend to close their own business. With the same, there
is also a fluctuation in the product prices in the market all over the world. The increased
competition has forced the companies to lower down their product prices (Gilboy, 2016). For
example, the Chinese companies produce their products at very low price as compared to the
others and this has compelled the other companies prevailing in other nations to lower down
their product prices as well so as to maintain customer loyalty and satisfaction. This has reduced

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the ability of the companies to sustain social welfare. Furthermore, as globalisation has increased
job opportunities, the rate of job insecurity is also increased with a same pace.
Knowledge that international managers must possess to stay ahead of the game
It is to note that globalisation has a great emphasis on diversity and due to this it also has
a great influence on the way the companies all over the world manage their employees and the
workplace. Possessing proper knowledge about the impacts of globalisation on the business and
its management helps the international managers to better equip their organisations for the highly
global business environment (Cavusgil & Knight, 2015). Right from the early nineties, the
process of globalisation has demanded immense efforts, skills and resources from the private as
well as public organisation belonging from the developed and the developing nations with an
objective of enabling the global managers, researchers, executives and public officers for dealing
with innovation, equating challenges and new reality. In the modern business environment, the
process of globalisation has greatly affected the customers and the management mind-set in
profound manner. However, it is also to note that the international economy at present does not
reflects the presence of political organisations which is defined as being “Nation State” (Berger,
2017). At present, there is an increase of new “Great Game” which is continuously reshaping and
reconstructing the international economy around a particular collection of specific nations as
well as the one with global economic institutions. It is to note that the challenges or barriers of
globalisation are highly complex.
With the increase in the phenomenon of globalisation, firms, notwithstanding their sizes
are now able to interact with their stakeholders and consumers belonging from different social
backgrounds, cultures, and speak in different languages. When the international managers think
about what could affect their roles, they usually think about worker productivity, the chain of

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command and their products or services. Even in small businesses, issues of globalisation and
intuition could highly impact the roles of the managers. With rise in globalisation, there is also a
rise in use of innovative and modern technologies in the business areas like that of cellular
information, internet, or high speed air travel. This has made the businesses process across the
world very easy. As said by Zander, McDougall-Covin & Rose (2015), more and more number
of businesses are “born global”. Hence, expanding the business to international market is not the
only option present for first world companies. In fact, small scale businesses belonging from the
smaller countries are quickly reaching to the larger markets for sustaining themselves. Hence, it
is very important for the international managers to gain modern and innovative perspectives as
well as walk through a thin line between the efficiency and focus on every individual market.
The international managers should be willing to examine the customers present in every market
and to develop the services and products uniquely tailored for all their consumers. They must be
adaptable, resilient and responsive to the diverse demands during delivering their services to the
customers seamlessly. Managers must be dealing with every cycles of change which the
phenomenon of globalisation is now-a-days bringing in and should also stay ahead of the game
(Mishra, 2015). With the same, they should always try to make sure that their business
executives are working well in order to stay close to the business customers. Creating a diverse
and inclusive workforce in this globalised world has become very vital and it is believed to
reflect the customers as well. Therefore, trying hard to develop staff knowledge, ability to
service the customers and for creating learning environment have become very vital for
supporting a very flexible working within the workplace.
Furthermore, the process of globalisation could have notable impacts on the decision
making process of the international managers for making such complex or interrelated decisions.

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Hence, they try to cope up with the legacies of poor execution and try to overcome them. The
phenomenon of globalisation has made sure the introduction of innovations and new ideas from
sources like the countries, regions, industries and businesses (Koukious et al., 2018). If the
companies need to achieve success, they need to make excessive aggressive strategic policies
that would consider all levels, including the ones which are made and pushed by international
subsidiaries which have the potential to make the headquarters learn the fact that local
innovations could also create global opportunities for the business success.
Contribution of outsourcing and off-shoring to globalisation
The concept of off-shoring and outsourcing are now-a-days considered to be one of the
critical parts of businesses’ circuits and are also highly applied in the. It was first begun within
the textile industry in the seventeenth century. In today’s modern world, they are rapidly
spreading among all the industries. With an increase in the process of globalisation, these
concepts has become more applicable and apropos in the businesses all around the world (Reese,
Rosenmann & McGarty, 2015). It is also to note that the global market has also identified a new
concept of the offshore outsourcing which is coherent with its various benefits. Nevertheless, as
the use and process of outsourcing in the modern business environments has become more
complex than before, offshore outsourcing is fantastically making a transition concerning the
business process outsourcing. Also, globalisation at present has become a language that is
universal because it has conquered all the vital fields that present in human history comprising of
business as well as the management. The growth in globalisation is an evident in many of the
characteristics of business functions. With the same, Globalisation has also paved the path for
strategic processes like that of offshore outsourcing and it has also proven its capability in
InfoTech like data analysis and software management (Baum, 2015). Furthermore, offshore

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outsourcing is also proven to be one among the most functional products in the process of
globalisation. Still, as the time has progressed, the concept of outsourcing has experienced an
extraordinary speed. Offshore outsource not only provides transformation and innovation to the
global market, and also has manifested its potential to connect every nations towards one
development. The offshore outsourcing has resulted in linkages between the countries and has
decreased the possibilities of earns among the supporting countries (Upadhyayula, Dhandapani
& Karna, 2017). The process of globalisation has aided a lot in making offshore outsourcing
feasible and it has also resulted in the concept of outsourcing in assisting globalisation mobility.
Concept of outsourcing is helping the current businesses market by playing a vital role in
globalisation mobility.
The contribution of offshore outsourcing the development and progression of
globalisation is portrayed by its influence on the universal market which are signs of
globalisation. It is fact that offshore outsourcing involves the exchange of services; hence, it is
leading in the increase in global flow of capitals (Lanz & Maurer, 2015). They are also
encouraging the speed of multiculturalism and larger people access to current diversity.
Employees who belong from outsourcing companies undergo more cultural exchange as they get
to work in an environment which is dissimilar from the others. Offshore outsourcing makes the
development of global telecommunications infrastructure easier which in turn initiates better
relation between diverse nations.
In recent years, offshoring of the high paying service jobs to the countries like India
received good attention from the media. As according to the analysis of the past three years; off-
shoring has accounted 0.5 million people. Average lay-offs every year is about 250,000 or say

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and it is indeed much less than two percent from the rest 15 million Americans who instinctively
lose their lay-offs per year (Kerkhof, 2015). It is beneficial to the current global economies.
There are several firms who have made use of this in their businesses and they are
successful as well. Some of the best examples to mention include the Microsoft, UpWork,
Alibaba, Groove, GitHub, Fab.com, SeatGreek, Slack and AppSumo. In case of Alibaba, a
widely recognised E-commerce B2B company, too has flagged the ways for the firms looking
towards outsourcing. Before outsourcing its production to China, Alibaba had initially
outsourced them to a company prevailing in United States (Yang et al., 2016). During those
days, development of foreign talents was still in shortage of supply and United States used to
have skills that Alibaba needed for competing with ecommerce giants like eBay. Furthermore, it
is also to state that the company did it all during the times when the use of internet was restricted
in China. It realised the significance of outsourcing during its advance technological
development.
Conclusion
To sum up the above analysis, it could be stated that the process of globalisation could be
referred to as a social transformation which is increasing the unity among different countries
through connecting them. This phenomenon is aiding the growth and development of this society
both positive and negative manner. With the same, it is also to note that the signs of globalisation
mobility are taken into consideration in the affects of the offshore outsourcing in international
regions. The impacts of off-shoring and outsourcing as two of the fastest developments in the
present business environment is still continuing to broaden its range of advantages. It has been
also identified from the above study that the quality of management is one among the core

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features of growth and success. Globalisation is aiding in pushing the frontiers of management
thinking. The success story of the company Alibaba has demonstrated that it is not important to
opt to outsourcing to a different company in order to experience success. What is important is
that a correct approach that has the potential to lead to success of the business.

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