ompanies targeting either India or China for the expansion of their businesses at present because of the immense growth potentials in these countries. India and China are two countries which escaped from the current financial crisis without much damage. It is not easy for a company to set up business in an overseas country because of the various challenges they may face in the target country. Human resource management is one of the core functional areas the offshoring organizations should consider in their business strategies.
This paper assumes that Microsoft, the American operating system/ computer software manufacturer is looking to establish a subsidiary unit of Microsoft in India. The various aspects of human resource management issues Microsoft may face in India is briefly explained in this paper.
Microsoft is one of the best examples of a monopolistic firm of the current century. No challenge at all for Microsoft in most of the countries in which they operate. In fact other companies like Intel forced to make microprocessor chips compatible for the smooth operation of Microsoft’s Windows based operating systems. In other worlds, Microsoft’s monopoly forces even other companies to dance with the tunes composed by Microsoft.
Even though nobody has any doubt about Microsoft’s abilities in controlling the software industry all over the world, there is no guarantee that it may become successful in every country if it overlooks the customized needs of each country. For example, India and China are two different countries compared to America and business concepts, organizational culture, behavior, and environment in these countries are entirely different from that of America. Microsoft needs to formulate customized business strategies for both of these countries, if they want to excel in these countries.
India is a secular democratic country and the second largest country in the world as far as population is concerned. Moreover India is recognized as one