More HR Going Offshore

by Alice Snell | November 3, 2006 No comments

The Offshoring Research Network (ORN) is a joint effort of the Center for International Business Education Research (CIBER) at the Fuqua School of Business at Duke University and global consulting firm Booz Allen Hamilton. They have been conducting a multi-year survey and panel study, collecting firm level data on the offshoring experiences of companies across many industries for the last three years.

The newly released report, Next Generation Offshoring, The Globalization of White Collar Work, takes a comprehensive look at drivers, employment impact, location choices, and risks of offshoring analyzed by industry, region, and company size.

Survey says:
1. Labor arbitrage is giving way to accessing talent as the primary driver of next-generation offshoring.
2. Offshoring high-skilled functions does not replace jobs onshore.
3. Companies look elsewhere, because they cant get it at home.
4. Where you offshore depends on what you offshore.
5. The obstacles to successful offshoring are increasingly internal and organizational.

Implications:
1. Businesses must develop a global workforce sourcing strategy now.
2. Organizational transformation is essential for success in the new business world.
3. Promote policies that cultivate innovation.

Although Information Technology (IT) is still the most popular offshoring function and the prognostication for the future is that IT offshoring will continue to grow at double digit rates, the survey results place HR at the top of the growth in offshoring by business function.

Offshoring Growth by Function

Then again, for a much more whimsical look at those HR jobs described by workers of the future, check out the charming video at www.hr.com/grow.

Alice Snell

Alice Snell

Former Vice President, Taleo Research

Alice Snell is former Vice President of Taleo Research. Ms. Snell has been tracking and analyzing the intersection between technology and talent management for more than a decade. A noted […]