Situation Analysis and Problem Statement: Global Communications Increasing competition and rapid changes in the business world have led organizations to reconsider their strengths and own key skills. The growth of offshore outsourcing has exploded in size as companies have sought lower labor costs and sophisticated technologies (Pfannenstein & Tsai, 2004). According to the McKinsey Global Institute, offshore outsourcing activities are estimated to increase 30-40% per year for the next five years. To support growth, Forrester Research estimates that 3.3 million white-collar jobs will move overseas by 2015, which would equate to an annual average from 2000 to 2015 of about 220,000 jobs in a workforce of 138 .8 million (Heffes, 2004). Outsourcing opportunities and challenges will be discussed in relation to scenario two, Global Communications. Key stakeholders will be identified and explained how ethical dilemmas may arise within the company. Finally, the end state objectives will be discussed along with the problem statement. Global communications are coming under economic pressure due to increased competition. Hoping to improve business and compete with local phone and cable companies, Global Communications' senior management team developed two approaches. The first approach is to introduce new services, primarily for small business and consumer customers, who will now be served in both local and long-distance markets across the country. Global Communications has developed a partnership with a satellite provider to offer video services and a satellite version of broadband, which will allow small business owners to access the Internet at any time using their wireless phone or PC cards. The second approach, aimed at reducing costs and improving profitability, Global Communications aims to market itself internationally with the aim of becoming a truly global resource. The company plans to move some of its technical call centers to India and Ireland, where the technology is more sophisticated and where labor costs are much lower. As part of its cost-cutting approach, the company will downsize some of its national call centers, leading to the layoffs of many employees. Employees who remain will have to relocate and take a 10% pay cut to accommodate the leaner budget. In efforts to improve business, there will be obstacles that global communications will face. To reduce costs, many employees will have to be laid off.