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Martin Murray

What Is Left To Offshore?

By December 13, 2012

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Offshoring Jobs Last week, the strike was resolved at the Ports of Los Angeles and Long Beach, but at the heart of the dispute was a familiar topic, that of companies "offshoring" jobs. The port workers were fed up of their jobs being outsourced overseas as soon as someone left or retired. The offshoring of US jobs is a constant worry for blue-collar and white-collar workers alike, as manufacturing jobs find their way to China, and service jobs go to India and the Philippines.

In the election rhetoric the candidates spoke a lot about increasing manufacturing jobs in the US, but will that every be enough to stem the tide of all types of jobs going overseas? The Hackett Group, a global strategic consulting firm, reports that in the last ten years 663,000 large-company service jobs in the US have been lost to overseas. In the next four years, they estimate that another 375,000 will go the same way. Large companies can save a tremendous amount from salary reduction, as much as 75 percent, which increases the bottom line, without increasing sales or improving productivity.

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Comments

December 23, 2012 at 1:11 am
(1) Fred Thomas says:

The company I work for have offshored almost everything, such as IT (to India), Accounts Payable (to the Philippines) and some purchasing (to Mexico). Apart from some head office functions there is almost nothing left.

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