Cerebral Shangrila

Sunday, September 11, 2005

Offshoring -- Where is the limit ?

Everyday sees a new kind of job being offshored from the US. From home tuitions to Prayers ( Seems Kerala is a destination of choice for Christian prayers) -- the offshoring is getting creative everyday. "Bangalored" ,is now a word some say , has found its way into online dictionaries.

So what are the jobs in the US that are safe from offshoring ? Nurses and barbers don't need to fear for their livlihoods, say two researchers. Most everyone else, don't be so confident. Here is more from BusinessWeek :

Economists J. Bradford Jensen and Lori Kletzer have come up with an inventive way of figuring out whose jobs are vulnerable and whose aren't. Jensen and Kletzer came up with a simple test: If a worker has to be located close to the customer, then the job can't be sent offshore. If the worker can be located far from the customer, the job might qualify for offshoring. After all, they reason, if you can serve a customer in Alabama from New York, you can probably serve her almost as easily from Shanghai or Mumbai.


  • Offshoring is business reality and will only increase as businesses realise that they can get the same thing done cheaper elsewhere. This arbitrage opportunity for low cost destinations will not last forever. The focus should be on adding high end value added knowledge solutions.

    By Blogger Abhishek Chatterjee, at 5:11 PM  

  • Can I argue with the master of "Labor Arbitrage" !

    I was interested in the article becos of the "creative outsourcing"

    By Blogger Cogito, at 10:07 AM  

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