Global Issues in Management.

Although the potentially lower costs of offshoring parts of an organization's operations can be an attractive proposition, such a venture has associated risks, as well as opportunities. Management is the key to managing the risks and leveraging the opportunities in offshore operations. In addition to expatriate managers who oversee the day-to-day functioning of offshore operation, it is also important to hire global managers who operate across national lines. These individuals can help smooth the entry of the organization into the new culture and help the organization accommodate the needs of the host country. Working in a foreign culture under a different set of laws and regulations brings with it new concerns in the host county. Offshore operations can also exacerbate existing management concerns such as security issues and quality control, or even bring new domestic concerns including problems with public opinion. All such considerations need to be taken into account as part of a cost/benefit tradeoff analysis before making the decision to globalize the organization.