Service companies have been sending jobs abroad in large numbers the past decade to cut labor costs — a trend that accelerated in the recession and is expected to continue the next few years before slowing after 2016. About 663,000 large-company jobs in information technology, human resources, finance and purchasing — the category that includes the port workers — have been offshored since 2002, according to The Hackett Group.
By 2016, the consulting firm estimates, another 375,000 jobs in the sectors will be moved abroad. More than a third of the U.S. jobs in those industries in 2002 will have moved offshore by 2016.
Most workers are employed directly by companies that previously used U.S. staffers, though some work for outsourcing firms. Hackett studied companies with at least $1 billion in annual revenue, noting they represent about 75% of the offshoring market.
India is the largest offshoring center. Service jobs also have gone to eastern Europe, the Philippines, China and Mexico.
Choosen excerpts by Job Market Monitor from
via More US Service Jobs Heading Offshore.
Related Articles
Reshoring / Apple to return some Mac production in US
Apple Inc is planning to bring back some of its production of Mac computers to the United States from China next year, Chief Executive Tim Cook said, according to a report published Thursday. The company will spend more than $100 million to build the computers in the United States, Cook was cited as saying in … Continue reading »
Reshoring / There was a herd mentality to the offshoring says John Shook
Business practices are prone to fads, and in hindsight, the rush to offshore production 10 or 15 years ago looks a little extreme. The distance across the Pacific Ocean was as wide then as it is now, and the speed of cargo ships was just as slow. A lot of the very good reasons for … Continue reading »
Wave of Reshoring U.S. Manufacturing?
U.S. manufacturing is in a period of resurgence, and while it is too early to say if the positive momentum has staying power, the sector’s revival is being aided in part by the return of production to the United States that had been outsourced to lower-wage rate locations overseas, particularly China and developing Asian economies … Continue reading »
US – Offshoring and middle-income workers
New evidence on the relationship between offshoring and polarisation In a new working paper, Lindsay Oldenski documents an empirical link between offshoring and the polarisation of the US labour market (Oldenski 2012). This study, which will be presented in November at both the Empirical Investigations in International Trade conference in Santa Cruz and the US Department of … Continue reading »
Reverse Offshoring | Indian firms creates jobs in US
Indian companies operating in 40 American states have invested over USD 820 million in manufacturing facilities in the US, creating thousands of jobs, according to the 2012 India Business Forum (IBF) survey. The survey “Indian Roots, American Soil: Adding Value to US Economy and Society”, released by the Confederation of Indian Industry (CII) at a … Continue reading »
China Reshoring manufacturing to the U.S.
Chinese conglomerates, on a mission to expand their global footprint and avoid “anti-dumping” tariffs, are shifting more of their production to America. In the United States, cash-strapped states desperate for revenue and jobs, are rolling out the welcome mat for foreign companies that can guarantee both. More Chinese manufacturers have been launching their own U.S. … Continue reading »
Reshoring | More Than a Third of Large Manufacturers Are Considering Coming Back to Made in U.S.
More than a third of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the United States from China or are considering it, according to a new survey by The Boston Consulting Group (BCG). Decision makers at 106 companies across a broad range of industries responded … Continue reading »
Insourcing to deter offshoring jobs
Kannan Ramanujam, president of a well-known multinational IT company headquartered in the US is in the process of preparing a SWOT analysis for his company’s new operations. The choice is between offshoring its activities and utilising a third-party vendor. The company has offshored most of its service delivery processes, both directly by setting up its … Continue reading »
Almost a third of the entire manufacturing industry jobs have disappeared since 2000
Nearly six million factory jobs, almost a third of the entire manufacturing industry, have disappeared since 2000. And while many of these jobs were lost to competition with low-wage countries, even more vanished because of computer-driven machinery that can do the work of 10, or in some cases, 100 workers. Those jobs are not coming … Continue reading »
Discussion
Trackbacks/Pingbacks
Pingback: Reshoring in UK / China wage hike spurs trend ? « Job Market Monitor - December 10, 2012
Pingback: Reshoring in US / A a nascent trend ? « Job Market Monitor - December 11, 2012