Numerous Job Loss Due to Offshoring
Filed in archive Outsourcing Issues on August 7, 2006
If ever the term "offshoring" or "outsourcing" is mentioned to employees, they immediately adequate it with job loss. The reality behind this connotation seems to be true as revealed by different case studies regarding outsourcing and offshoring.
The report done by the Chartered Institute of Personnel and Development have shown that 30,000 jobs are sent annually ever since the start of the outsourcing trend in the year 2000. There were 600 firms who participated in the survey and nearly a third of these firms reveal that they feel the pressure to outsource some of their functions.
Aside from revealing the statistics behind the job loss in outsourcing, it also determined the common tasks which are outsourced. Manufacturing and production are the common tasks outsourced by firms and are followed by IT support and IT development. Cost-saving was still identified as the top priority in outsourcing decisions.
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