Global Communications Benchmarking

Global Communications Benchmarking

Pam Anderson, Jose N. Cavazos, Loree Maroszek and Keitha Williams

University of Phoenix

Global Communications Benchmarking Research

This study presents our analysis of various companies. These companies have provided specific ethical issues that we used and compared against Global Communications. Ethical issues have become increasingly important within the global community. All the companies represent global competition and the cost of outsourcing jobs to foreign countries as did Global Communications to increase profitability. Therefore, this study will identify key concepts and compare global companies.

AT&T - Loree Maroszek

AT&T initiatives are similar to Global Communications. "The wider global strategy of AT&T is to expand its reach in key growth and emerging markets to support the needs of its global enterprise customer base" (AT&T, 2006, ¶4). AT&T is already in global markets whereas Global Communications wanted to branch out to the global markets.

According to the Global Exchange, "US corporations are picking up the pace in shifting well-paid technology jobs to India, China and other low-cost centers, but they are keeping quiet for fear of a backlash" (Reuters, 2003, ¶1). Global Communications was just going to begin the process of laying off workers and start negotiations with companies in India and Ireland to help reduce costs. "AT&T Wireless told the US Securities & Exchange Commission that it would lay off 1,900 employees this year. Communications Workers of America obtained an internal memo prepared by Tata Consultancy Services of India that discussed how it would assume those US jobs" (Reuters, 2003, ¶15).

In a news release dated November 21, 2006 AT&T, "announced the development of its global strategy to serve the needs of its global enterprise customer base in the Middle East region - one of the highest economic areas in the world" (AT&T, 2006, ¶1). AT& T is embracing its globalization efforts and publicly announcing their plans. According to the Global Exchange in 2003, "Nobody has come up with a way to spin it in a positive way" (Reuters, 2003, ¶4). In 2003 when companies were off shoring to cut costs they were reluctant to attract attention for political reasons (Reuters, 2003, ¶3).

There are so many companies off shoring to help cut costs. In some cases by off shoring jobs could be cut and the US jobs vs. foreign jobs within the company could be skewed. In other cases such as AT&T they are growing the company tremendously. AT&T is tapping in different countries with their products and services which in turn keep jobs for servicing. The technical aspect of the jobs could be in India and varying countries; however there still a great deal of jobs in the United States.

IBM - Loree Maroszek

IBM and Global Communications face similar issues. The issues are layoffs in the

United States and transferring jobs to other countries for cost savings. IBM has been a global presence for many years whereas Global Communications is just beginning its process to outsource overseas and gain business in the global community.

In 2003, "there have been reports that IBM intends to ship 4,700 high-end jobs to India and China next year" (Reuters, ¶11). "Those numbers were not released by IBM, but rather disclosed by the Wall Street Journal, which had obtained an internal memo" (Reuters, 2003, ¶12). Similar to the Global Communications information that was disclosed to the press is the information from IBM. Global Communications Board approved the layoff of jobs because of off shoring to India and Ireland. With the transition they needed to communicate to employees before the information was released to the press. If Global Communications is not honest with its employees the press release speculation starts to occur. "As many as 40,000 of IBM's 160,000 US jobs will be transferred overseas by 2005, a figure that was gathered from phone calls by IBM employees" (Reuters, 2003, ¶13). Employee loyalty is an issue when employees start reporting information outside of the company that should be kept within.

In January 2004, within a couple of weeks of the denial from IBM they announce moving jobs overseas. "IBM expects to save $168 million annually starting in 2006 by moving several thousand high-paying programming jobs abroad, according to internal company documents obtained by the Wall Street Journal" (Reuters, 2004, ¶1). Global Communications was to save approximately 40% by transferring jobs overseas. "The Journal said the documents indicate that for internal IBM accounting purposes, a programmer in China with three to five years of experience would cost about $12.50 an hour, including salary and benefits. That's compared with $56 an hour for a comparable U.S. employee" (Reuters, 2004, ¶6). Based on my current position benefits alone make up approximately 35% of costs for an employee. This can truly add a great deal to the actual hourly wage paid to employees not to mention the extra benefits such as tuition reimbursement and vacation days. "IBM currently has 8,300 employees in China. Third quarter revenue increased 27 percent compared to the same period last year" (IBM, 2006, ¶4). In my research I also wanted to find out what IBM was doing in Ireland. IBM and Ireland have had a relationship for 50 years. An announcement in Ireland said, "That IBM will invest Ђ46 million in the country over the next three years, creating more than 300 highly-skilled roles" (IBM, 2006, ¶1).

IBM continues to do business with various countries in order to be a global presence. Even though jobs have gone overseas they are growing operations. Global Communications was also growing the business by hiring 1000 workers even though they were cutting costs at the same time by outsourcing to India and Ireland.

TRW - Pam Anderson

TRW is a supplier of automotive systems based in Livonia, Michigan. "The company is divided into three segments: chassis systems, occupant safety systems and automotive components" (MarketLine, p1). Engineering, sales and production operations are located within 25 countries. Chassis use approx. 50% of the segment. Occupant safety uses approx. 26% and the other 24% goes to the automotive components.