Offshoring: It's better for everybody

October 22 2004
by Will Sturgeon
Even those who are losing their jobs... sort of...
Offshoring is benefiting companies, countries and economies on both sides of the debate, according to attendees at the Better Management Live Conference in Las Vegas this week.


Technology companies in Europe and the US claim the offshoring 'kick-back' is the creation of new jobs in their domestic market which are "higher up the economic value scale" than those jobs which they have sent to countries such as India.

While on an individual-by-individual basis there are clearly those who will be worse off, in general this is having a positive effect on Western economies and workforces, according to Nigel Holloway, director of executive services at the Economist Intelligence Unit, who quoted McKinsey figures.

Chip Greenley, VP marketing and solutions at HP, said: "From a generic perspective it has to be good for the global economy."

Greenley and representatives from other vendors, said cost savings associated with offshoring are being reinvested in the creation of more high-value roles in the domestic market.

"We have taken large chunks of our business and moved them overseas," said Greenley. "If we know that by offshoring our accounts payable handling we will create the budget to hire 200 new hardware and software engineers then I can tell you it is going to happen."

Offshoring: It's better for everybody