From Culture’s Consequences to “Project Match” – IBM needs to add home country fixed costs

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IBM has come up with a rather controversial "Project Match" offer for laid off employees to work in "growth" markets in India, Nigeria, Eastern Europe etc. IBM is telling its laid off employees to look at opportunities in the IBM subsidiaries where the local market is growing. The catch is that you get paid the local salary which might be just 20% of the current home salary.

If your job is outsourced then the logic seems to be to  move you to the "source".

While IBM's idea seems blasphemous to a high cost country employee- it tells us something about the full circle that globalization has come to. In the 1980's IBM was perplexed as to why various subsidiaries understood and implemented "central commands" so differently. So the now famous Geert Hofstede was commissioned to figure out why this was so. Hofstede came up with culture's consequences and changed the way we look at national culture and its impact on work at subsidiaries of an MNC.

Today, what would a laid off IBM-US employee do with his/her kids college expenses and 401K and mortgage  if they took a job at 20% salary ? IBM and other multinationals need to look at the possibility of covering some of these "fixed" costs if the idea is to work.

But if you have an expat offer (which takes care of these costs) and have not yet been laid off – this is the time to take it up!

One thought on “From Culture’s Consequences to “Project Match” – IBM needs to add home country fixed costs

  1. >
    There are colleges in all these countries, there are pension plans too & it should be easier for you to buy a house (even the house will be 20% of the US price).
    The “expat” phenomenon is a thing of the past. Dont expect such things any more, the best that is offered by MNC’s are serviced appartments, they no longer offer appartments with swimming pools and servants.

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