Offshoring worries worked out
A McKinsey Global Institute report says that fears of offshoring prompting a new wave of unemployment are blown out of proportion.
Offshoring of service jobs to developing countries where worker supply is high and costs are low is seen to continue and increase well into the next decade – but that doesn’t mean that these positions will be snapped up by the first candidate who comes along. Despite the university-owned degrees, the deficiency of work-related experience and aptitude stands in the way of fully supplying the foreign demand.
McKinsey director Diana Farrell rues, "A lot of developing countries are churning out new graduates but not giving enough thought to the practical skills they will need if they are to work for multinational companies."
Manufacturing jobs make up the bulk of services offshored. A different trend of job migration is not seen however, with the equally demanding service sector. The McKinsey report scrutinized the eight sectors of the global community to work out the anticipated requirements for people in service occupations in offshore centers:
- automotive
- healthcare
- insurance
- information technology services
- retailing
- pharmaceuticals
- banking
- software
The report also delved into the specific types of service jobs within each of the sectors which could theoretically be worked on in a different, remote site – namely in low-cost countries.
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