• High quality service: Asian companies are known for providing quality services to their clients. This is the reason due to which large number of US and UK based firms outsource their business tasks to the India and other South East Asian nations. Outsource firm’s revenue depends on the extent to which tasks are outsourced to them. More will be quality more revenue will be earned in the business. Hence, high quality service which is provided by the Asian firms is one of the reasons due to which outsourcing of task must be happened to the Asia Company regularly.
• Skilled workforce availability: In Asia there is highly skilled and professional workforce which also possesses knowledge about the use of digital technology in the HR field (Chen, Uen and Chen, 2016). Asian companies quickly adopt innovative technology. Thus, skilled workforce availability is another reason due to which firm must remain in the Asian market.
• Cheaper cost: In the Asia cost of HR is very low, then UK and other EU nations. Firms have to pay less to the HR for same working hours and same task. Hence, by operating in the Asia market firm will generate economies of scale in the business. More extensively it can be said that HRS get same service quality at low price in the Asia market then UK and other EU nations. Dollar charged per hour in Asia is less then charged in the UK and EU nations. Skilled individuals in US charge $50 to $80 per hour, but in India just $15 charge per hour. Cost savings can be invested further in the business to expand it at a rapid pace. Hence, cheaper cost is the one of the lucrative factors due to which firm must remain in the Asian market.
• 24 hrs service: One of the attractive features of the service provided by the Asia companies is that they provide 24hrs services to their client (Grimshaw, Rubery.. and Ugarte, 2015). Even on festival days and national holidays with a limited workforce, they provide service to the client. On receipt of any new request Asia firms immediately provide service to their customers. Thus, Asian firms provide 24hrs service without any interruption at low cost and this is another lucrative factor and reason behind remaining in the Asia market.
• Benefit of currency exchange rate: Currency exchange rate is another factor due to which service provided by the Asia firms is very cheaper than same provided by the UK and other EU firms. Nations like India, Russia and other South East nation’s currency value is lower than GBP and due to this reason also a service provided by the Asia firms are very cheaper for the UK companies. This lead to generation of economies of scale in the business (Nishii and Paluch, 2018). Thus, it can be said that per hour dollar charged is lower in Asia then UK and other EU nations. On the other hand, currency value of the most of Asia nation is also lower than same of GBP and Euro. Hence, due to this reason HRS must remain in the Asia and must consistently keep outsource its business task to the Asia Company.
On the basis of the above discussion, it is concluded that due to low cost and currency exchange difference Asia market is cheaper than the UK and US market. It is also concluded that due to use of multiple parameters like EI test, GATB test, group discussion and situation analysis better candidates will be selected for the firm. To retain workforce improvement must be made in the culture, rewards must be given and skill development as well as career development opportunity must be given to the employees. By doing so for long term employee turnover rate can be reduced by the firm.
Books and Journals
Bouwmans, M. and et.al., 2019. Stimulating teachers’ team performance through team-oriented HR practices: the roles of affective team commitment and information processing. The International Journal of Human Resource Management. 30(5). 856-878.
Celma, D., Martinez-Garcia, E.. and Raya, J. M. 2018. Socially responsible HR practices and their effects on employees’ wellbeing: Empirical evidence from Catalonia, Spain. European Research on Management and Business Economics. 24(2). 82-89.
Cheese, P.. and Hills, J. 2016. Understanding the human at work–how neurosciences are influencing HR practices. Strategic HR Review.
Chen, S. Y., Uen, J. F.. and Chen, C. C. 2016. Implementing high performance HR practices in Asia: HR practice consistency, employee roles, and performance. Asia Pacific Journal of Management. 33(4). 937-958.
Farooq, M., Ullah, I.. and Hameed, R. M. 2016. HR Practices and Organizational Innovation: The Mediating Role of Knowledge Management Effectiveness. Journal of Social and Development Sciences. 7(3). 50-67.
Grimshaw, D., Rubery, J.. and Ugarte, S. M. 2015. Does better quality contracting improve pay and HR practices? Evidence from for-profit and voluntary sector providers of adult care services in England. Journal of Industrial Relations. 57(4). 502-525.
Jermsittiparsert, K., Siriattakul, P.. and Wattanapongphasuk, S. 2019. Determining the environmental performance of Indonesian SMEs influence by green supply chain practices with moderating role of green HR practices. International Journal of Supply Chain Management. 8(3). 59-70.
Jiang, K. and et.al., 2017. Understanding employees’ perceptions of human resource practices: Effects of demographic dissimilarity to managers and coworkers. Human Resource Management. 56(1). 69-91.