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© 2008 IBM Corporation IBM Government Programs | Movement of service providers - Intra Company Transfers Jolanta Jaworska Government Programs Executive IBM Poland Geneva, September 22, 2008
IBM © 2008 IBM Corporation 2 IBMs Global Services Presence Venezuela Okinawa Argentina Romania China India Philippines New Zealand Brazil Application Services Business Transformation Services Strategic Outsourcing Costa Rica Peru Spain South Africa Ireland Czech Rep. Canada Slovakia Hungary Poland Mexico Australia UK Portugal France IBM Services are delivered seamlessly through our standard worldwide delivery methodology involving over 200,000 skilled professionals across multiple countries. This business model requires frequent movement of resources across country barriers for both business travel as well as long and short term assignments. In turn, this creates a dependency on the respective countrys authorities and practices. USA
IBM © 2008 IBM Corporation 3 Facts about movement of workforce Movement of workforce in a globally operating company is a part of daily operations Growing employees willigness and ability to find a jobs far from home land Talent goes where talent is needed Internal company job posting is part of the culture and principles The opportrunities for temporary foreign assignment are the form of company recognition and retention programs Sending high potentials abroad to gain experience of another culture and working styles, sometimes is mandatory if they aspiring to the executive role, Lower barriers for mobilty lead to less permanent immigration in the long term ( eg, Irish and now Polish case), Complementary role of mobile skills (with technical, industry and other "horizontal" expertise) to address gaps in local skills with intimate market and customer knowledge
IBM © 2008 IBM Corporation 4 IBM inbound and outbound assignee models Inbound Assignee model ( from developed economies to growing) Development opportunities in a high growth market like Asia, Eastern Europe,South America Provide leadership in selected areas, and groom future leaders More than 60% of assignees are accompanied by spouses Around 40% of inbound assignees are accompanied by children Coming mainly from USA, Europe, Australia - aproximately 200 yearly Outbound Assignee Model ( from growing economies to developed) Global Development Opportunities for future leaders from growth countries Program Managers or technical professionals working on global delivery projects Transition work – short term assignments Onsite team members – longer term assignments Going to Europe and USA – aprox 2000 yearly
IBM © 2008 IBM Corporation 5 The main barriers and restrictions faced by companies in relation to the admission of ICTs are as follows: Admission Criteria / Definition of ICTs ( qualifications, salary level, labour market test) Application Process (Separate Documents – Work Permit, Visa & Residence Permit : Processing Time Process Fees Supporting Documents Validity Renewal Process Scope of Work Permit - for individual countries, Specific Regions Client Limitation Visa Restrictions
IBM © 2008 IBM Corporation 6 Inbound International assignees challenges and outbound International assignees challenges minimum compensation tresholds, authorities requesting IBM Pay slip minimum salary, vs. local country salary components and assignment provisions requirement for legalization of assignees certificates (birth/marriage/educational/police) from the place they were issued. strict submission (2x/year) & processing dates (6 months) results in lengthy lead times for obtaining Work permits. Long lead times in processing Foreign Tax Credits, and no communication regarding completion of assessments. long visa and work permitt processing time – 3 months and up, same applies to renevals. Additional cost & impacts frequent business travelers. Foreign Regional Registration Offices Requirement of presence of young children for registration complex process for visa registration, requirement for plenty of company legalized certificates
IBM © 2008 IBM Corporation 7 Recommendations that would support business development and economic growth Enable reform of regulation through simplification, which increases job mobility Provide a regulatory proposals that allows business to grow and operate in a timely and cost-effective manner. Promote & support knowledge based economy - right skills in the right place at the right time, Draw on technological skills rather than low wages - encourage private investment in R&D and skills development, Avoid barriers to businesses embracing a global enterprise model that allows deployment of skills and other assets globally and in the most competitive way Promote mobility and flexibility of workforce,
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