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Old 07-09-2013, 05:15 PM
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New Study Shows 1/3 of Jobs Prone to Offshore Outsourcing

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The change in the skill (educational) level of jobs being moved abroad has led some to wonder whether the offshoring of service, unlike production, activities will result in college graduates facing a dwindling supply of entry-level jobs that have traditionally served as stepping-stones to higher skilled and higher paying positions. The notion that offshoring depresses job growth in the United States appears to underlie support among some policymakers for measures meant to encourage U.S. firms to expand employment domestically rather than abroad. While some members of the public policy community also support the adoption by other countries of trade and labor policies intended to level the playing field for U.S. companies and workers in the international marketplace, still others advocate for limited government intervention as the best means of promoting economic growth.

The overseas relocation of manufacturing work predates by decades the recent wave of services offshoring. Major U.S. companies, initially responding to heightened competition from Japanese and European multinational corporations, opened facilities abroad during the 1970s and 1980s that turned out goods formerly produced by comparatively well paid, often unionized U.S. factory workers (e.g., assembly-line workers in the auto industry).

U.S. companies reacted to the back-to-back recessions of the early 1980s by focusing on their core missions and contracting out activities that specialized domestic enterprises could perform more efficiently (e.g., janitorial services). Firms also restructured their operations by outsourcing jobs to employees of temporary help agencies, professional and business services establishments (e.g., accounting firms), and independent contractors located in the United States. The persistence of these changes over time indicates that domestic outsourcing of formerly in-house functions is a permanent reorganization of how work is performed in the United States.

Another development was the educational systems of low-wage foreign nations graduating an abundant supply of well educated (sometimes English-speaking) individuals. In some cases, the number of persons with IT and accounting skills reportedly exceeded the immediate needs of their local economies (e.g., China, Eastern Europe, India, and the Philippines). With English the language of the computer industry worldwide, IT services can be provided from many non-English-speaking, comparatively low-wage nations (e.g., Argentina, Brazil, Bulgaria, China, the Czech Republic, Hungary, Jordan, Lithuania, Mexico, Slovenia, Russia, and Ukraine).

Research suggests that the extension of task fragmentation to service activities accounts for the greater relative contribution of offshoring to increased wage dispersion (inequality) in the United States in recent decades. Technological change and de-unionization appear to have accounted for relatively more of the so-called polarization of wages that occurred during the1980s and 1990s.

Researchers have mostly focused on determining which jobs are susceptible to being moved abroad and then on estimating U.S. employment in these potentially offshorable activities in a given year. One such empirical analysis was undertaken in the early years of services offshoring by Bardhan and Kroll. They estimated that more than 14 million jobs in 49 service occupations, representing about 11% of total U.S. employment in 2001, have attributes that could allow them to be sent overseas.
http://www.economicpopulist.org/cont...re-outsourcing

So do you fall in the highly offshorable and offshorable categories? or are completely immune to offshoring?
 
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Old 07-23-2013, 02:22 PM
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If I am an American, I will invest in an education that can never be outsourced abroad, I will take up automotive mechanic as a vocational course for example, It will be impossible to outsource my job so I am rest assured that my job will be safe no matter what the economy is doing. It is just a matter of minimum wage, An American call center company will be better off operating in the Philippines paying 400 dollar monthly per single employee than operating inside the U.S paying more than 1000 dollar per employee.
 
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Old 08-07-2013, 06:52 PM
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Originally Posted by gracemary View Post
If I am an American, I will invest in an education that can never be outsourced abroad, I will take up automotive mechanic as a vocational course for example, It will be impossible to outsource my job so I am rest assured that my job will be safe no matter what the economy is doing. It is just a matter of minimum wage, An American call center company will be better off operating in the Philippines paying 400 dollar monthly per single employee than operating inside the U.S paying more than 1000 dollar per employee.
True. You really can't stop companies from moving jobs offshore. Most especially small companies because they must hire remotely to survive. It's their key to survival to be able to hire someone great at an affordable salary.
I've read from an interesting article ( http://www.staff.com/blog/7-trends-f...-work-to-2020/ ) that by 2020 as wages rise in Asia, moving jobs offshore will slow down. However, corporations will still continue to evaluate the comparative cost and advantages of labor in different countries.
So, I guess, the above post/advice makes sense.
 
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Old 08-22-2013, 09:29 PM
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Outsourcing is going to be there for some time to come. Now, companies are coming out with new software(s) that could automate the outsourced jobs. Usually, the outsourced jobs are mechanical and repetitive in nature. Therefore, it is most likely that many outsourced jobs vanish (mechanized) to a large extent in the years to come due to mechanization process.
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