Offshoring form US Companies – Just over 30%, a 3 percentage points higher than seven years ago, or a 10% increase

• US-based employers expanded employment abroad faster than domestically for the past 7 years. This is particularly pronounced among Tech and Consulting firms.
• Highly remote-suitable roles have grown 42% faster outside the US than within the US since 2019, while there is no difference in growth rates for roles that are not remote-suitable.
• Cost saving considerations play another large role for offshoring. For every 10% reduction in foreign worker salaries compared to average US salaries for the same role, employment outside the US grew 13.1 percentage points faster than within the US.

The share of US-based companies’ workforce abroad grew steadily from 2017 through early 2022 but has slowed since mid-2022. Currently, the share of employees working abroad for US-based conglomerates is just over 30%, which is 3 percentage points higher than seven years ago, or a 10% increase.

Chosen excerpts by Job Market Monitor. Read the whole story @  “American Companies are Offshoring High-Paying, Remote-Friendly Jobs” by Zanele Munyikwa, Lisa K. Simon et al.