Sending Jobs Overseas May be the Next Evolution of Remote Work
New York, NY, April 11, 2023-The next wave of remote work is about outsourcing jobs overseas, reports the Wall Street Journal, noting that companies are responding to labor shortages and rising wages by moving some positions abroad.
"During the pandemic millions of Americans worked from home and many decamped to cities like Boise, Austin and Phoenix,” reports the Wall Street Journal. “Companies learned that employees could be productive from afar, thanks to remote-working tech like Zoom and Dropbox.
“Those moves were usually at the behest of workers who wanted a change of environment, sought more living space or somewhere cheaper. Companies agreed to these arrangements largely to retain employees in a competitive labor market.
“Now companies are responding to lingering labor shortages and rising wages by sending jobs overseas, according to labor consultants. In August, 7.3% of U.S. senior managers surveyed by the Federal Reserve Bank of Atlanta said they were moving more jobs abroad as a result of remote work.
“Deel, a human-resources company that helps clients hire abroad, said hiring through its platform more than doubled last year. The share of job listings that are remote has surged since 2019.
“The exodus of office jobs overseas is still a trickle. But it is accelerating and some economists see it as the beginning of a new era. About 10% to 20% of U.S. service support jobs like software developers, human-resources professionals and payroll administrators could move overseas in the next decade, according to Nicholas Bloom, an economist at Stanford University.”