With the consumers decreasing spending power with the seemingly unstoppable Internet popularity rise tied up. It is no surprise that even a hundred a year old publishing firm would feel the pressure of staying on the top of the business. The Germany’s conservative corporate nature is then challenged by the times to rethink its existing business models.With a projected 2008 turnover of Euro 1.79 billion and currently publishing 282 magazines in 15 countries. It is now feeling the slow down in magazine demand. To outsourced its Post Press Department to yet an unnamed firm, to remain profitable the multinational company has decided. The department currently employs 133 Germans who are now at a loss as to what this new arrangement will bring to them as shared. To determine the future of these 133 workers. They can be retrenched and replaced by lower to cost workers or can be offered a lower salary than they currently have.
In Germany’s neighboring countries, the lower cost workers or can be offered a lower salary than they currently have. In Germany’s neighboring countries, the lower cost laborers are easily available such as Russia and Poland. The harder part will be going around the stringent protective German labor laws and the country conservative business model. The outsourcing has never a foreign word to Germany with the great demand for the skilled workers and low supply of the local workers. The country has benefited from the outsourcing to fill the gaps. As unemployment rate rises and jobs are moved to neighboring countries such as Poland,Russia and Czech, outsourcing has also received a lot criticism from Germans. The BBC reported that the high end German car maker BMW has outsourced its plant production to the South Carolina to boost production to 240,000 units by 2012 and pay less wages in euros.
The $750 million investment was stated to create 500 jobs and employee cuts in Germany totaling to $8,100 jobs. The German business software giant SAP also currently outsources some of its work to IBM Philippines and Supply Chain Management Philippines to the anonymous IBM employee. The predictions are strong that with the tough times, the German firms outsourcing conservatism would ease and more Central Eastern European countries inter-cooperation that will take place.
REFERENCE:
http://www.blog.infinit-o.com/german-outsourcing-firms/
