Study: No Evidence That Offshoring and Outsourcing Decrease Local Jobs

16 Jan 2018

A joint report conducted on nearly 6,000 European service multi-nationals by the Warwick Business School, University of Wollongong and Aston University has discovered that there is no evidence that offshoring and outsourcing lead to an increase of local unemployment.

The study ‘Does offshore outsourcing impact home employment? Evidence from service multinationals’ will be published in Journal of Business Research surveyed 5,746 European multi-nationals that leveraged over 9,000 offshore service providers.

The Real Impact of Offshoring and Outsourcing

The researchers also found that since the 2007 – 08 GFC, the offshoring and outsourcing of roles actually had a positive impact on local employment.

These findings highlight the common misperceptions that services like offshoring and outsourcing, which leverage extended global workforces, have a negative impact on the economy.

Some of the results are reflective of the findings in a survey we recently conducted on a number of medium, larges and listed Australian businesses.

In our corresponding report on the survey findings, ‘The State of Offshoring in Australia’, the majority respondents indicated that the utilising offshore workforces had minimal to no impact on local employee turnover and hiring practices.

The parallels between the report conducted on European businesses, and our survey on Australian businesses, demonstrate that the value offshore workers can deliver is recognised on a global scale.

Embracing the Global Workforce

Leveraging offshored and outsourced workers can allow businesses to access talent that may be in short supply locally or allocate lower value and time-consuming tasks to remote teams, freeing up local workers to focus on value-adding initiatives.

As a leading provider of offshore staffing solutions, we work with companies in unlocking the value that offshore workforces deliver.

As business strategies, offshoring and outsourcing will only continue to skyrocket in adoption as more and more businesses continue to implement new strategies to enhance competitiveness, increase capacity and service the demands of a 24/7 global business environment.

Talk to us today about how we can help you understand whether or not an offshore workforce is right for your business.