June 06by Silver Group1 OFFSHORE or NOT? Training costs (technical information, language) Training costs (technical information, language) Transfer costs Transfer costs Cost of Extend Cost of Extend Capital flow to another country Capital flow to another country Cultoral conflict Cultoral conflict Social reactions (Risk of boycott) Social reactions (Risk of boycott) Decrease in motivation of employees Decrease in motivation of employees Unemployment Unemployment Tax reduction Tax reduction ⇧ service quality ⇩ cost of service Competitive advantage

June 06 by Silver Group 2 DO NOT TRY OFFSHORE (not now) IMPROVE THE CURRENT POSITION

June 06by Silver Group3 To PREVENT (-) outcomes and to CREATE same (+) outcomes Hire better and cheaper quality employee Hire better and cheaper quality employee Hire part-time employees Hire part-time employees Train them to provide service quality Train them to provide service quality Explain the current problems and decisions Explain the current problems and decisions Offer them lower wages Offer them lower wages Train current workers Train current workers LAYOFFLAYOFF DON’T LAYOFF

June 06by Silver Group4 RESULT !!! During the one year, evaluate the effectiveness of decision, search the alternatives (India etc.) During the one year, evaluate the effectiveness of decision, search the alternatives (India etc.) If the decision is ineffective  Consider offshore If the decision is ineffective  Consider offshore