HR Audit

HR Audit

Introduction

To earn profit or operate business lucratively is the sole purpose of a business. In order to achieve this goal different companies adopt different approaches and methods. One of such approaches is of business expansion. This paper deals with the same phenomenon. This paper would present the findings of analysis of environmental audit for the business expansion in Russia in information technology industry.

Environmental audit

Whenever any business plans to expand its operation it becomes imperative to audit the environment of the new country. Environmental analysis helps policy makers and management to devise appropriate policies and to take measures to deal with possible threats.

Factors that drive economy in Russia

Irrespective of the global market the position of Russia has shown very impressive growth over the period of past five years. The main factor behind this growth is that the government and economists took measures to reshape the nub of the industries. To meet the demand of the internal market foundations of scores of new factories and businesses have already been place.

GDP of Russia has shown escalation of about 48% from 1998 to 2005. The drivers of local and global economic growth often change. One factor that is considered as boon to Russia's contribution to global economic growth in the post-crisis era, according to Russian Finance Minister Alexei Kudrin, is the government's plan to boost the current scope of privatization of state assets and stimulate economic competition in the country. Other positive growth drivers will be Russia's eventual admission to the WTO, expected later this year, and, of course, a more effective use of the country's hydrocarbon assets and other natural resources. All these factors can drive growth to a new level in the country. Russia has got mammoth amount of natural supplies the export of which generate revenues for the country.

“Russia possesses ample supplies of many of the world's valued natural resources, especially those required to support a modern industrialized economy” (Smith, 1994, 24)

Another factor that gives boost to economic growth is mortgage and credit system. Factors related to HR that supports economic growth are change of management and reconstruction of industrial base. Reconstruction of industrial base opens forums for foreign investors and increase availability of employment. Moreover, continuous and increased rate of employment increases the skills and professionalism among employees.

Russian IT industry analysis

One of the rapidly growing industries of Russia is of information technology. Russia has been considered to spend on the research and development of science and technology for a long time. In order to give boost to the market of IT government has taken many steps such as tax breaks and incentives. Many entities of private sector are taking immense interest in investing in this field which makes IT industry of Russia an attractive field for international investors.

States of IT industry of Russia provides so many favors for the HR perspective to those who want to expand their business in Russia. One of such advantages is that the labor cost is low in Russia in the field ...