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US service jobs are moving offshore

Posted on December 10th, 2012 Read time: 1 minutes

Many business service companies have been sending jobs abroad in large quantities over the last decade to cut costs. USA Today reports in the past few years, the recession has significantly increased the phenomenon, which is expected to continue at its current rate before slowing down in 2016.

As the economy picks up slowly, many companies are either keeping employment rates modest or investing in more talent abroad in IT, human resources, finance and purchasing, according to a recent study by consulting firm The Hackett Group. Building a workforce in developing countries is extremely less costly for these organizations.

The report states roughly 663,000 large company jobs have been offshored since 2002. By 2016, another 375,000 similar jobs will be moved abroad.

According to Hackett, "India remains the destination for most companies that have established global business service organizations or plan to do so."
Nearly 75 percent of companies surveyed consider India a top potential destination for new capacity.

Offshoring employment has significant implications for HR administration. While workforces expand across national and cultural borders, decision makers are striving to develop a sense of corporate community and centrality.

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