Offshoring Case

Many U.S. companies are faced with the same question: Does outsource offshoring provide significant benefits to our company? Many will say yes, as outsource offshoring tends to cut the costs in either the production of goods or delivery of services. Others will say that the offshoring of jobs will negatively affect the U.S. economy. On the other spectrum, U.S. workers big question is: What jobs are offshorable and am I in danger of losing my job? In the past, it was thought that only low-skilled work was capable of being offshored, but as other countries become more advanced in the field of work it is evident that this is no longer the case. It will also become evident that interaction with the customer is one of the, if not the most, important

Blinder laid out a clear, and easy to understand figure that shows which jobs have potential for being offshored and how likely they are of being offshored. The biggest factor for deciding offshorability according to Blinder was whether a job required face-to-face interaction with the customer. This meant that even high-skilled work, like accounting, could be offshored as long as there was little to no need for face-to-face interaction with the customer. Through the examination of financial and accounting firms in both the U.S. and Australia, it is evident that outsourcing of high-skilled jobs is on the rise for a few reasons. One reason is the lower cost of offshored work and the fact that companies are beginning to experiment with it to see the benefits of offshoring firsthand. The second reason is that countries with large populations, such as China and India, have a larger pool of qualified workers and graduated college students ready to work. After looking at real world examples of offshoring going on today in high-skilled work fields, such as accounting, it is safe to say that these three factors together are enough for a company to look into