The Rise of No-Location Jobs

The Rise of No-Location Jobs

More Choices Than EverMore Choices Than Ever

The number of locations suitable for business services offshoring is greater than ever. For companies, that’s welcome news, but it also increases the complexity of designing “the optimal footprint,” according to the A. T. Kearney report.

Top 10 Offshoring CountriesTop 10 Offshoring Countries

Rank, Country, Position Change: 1 India 0, 2 China 0, 3 Malaysia 0, 4 Mexico +2, 5 Indonesia 0, 6 Thailand +1, 7 Philippines +2, 8 Brazil +4, 9 Bulgaria +8, 10 Egypt -6

India Increases Its LeadIndia Increases Its Lead

India maintained and even increased its lead as the top offshoring destination against second-ranked China. Asia continues to dominate, with six of its countries among the Global Services Location Index’s top 10. The index ranked Bangladesh for the first time, at 26.

Mature Labor in Central EuropeMature Labor in Central Europe

Central Europe offers highly skilled workers at 50% of the cost of Western Europe, and that cost advantage increases in Southeast Europe. These cost advantages must be balanced, however, against a more mature industry and regulatory landscape.

Middle East, North Africa, and North AmericaMiddle East, North Africa, and North America

The Middle East and North Africa benefit from a large pool of talent and from their proximity to Europe. North America offers attractive opportunities outside metropolitan areas.

Outsourcing Course CorrectionOutsourcing Course Correction

Companies are repatriating some functions to companies’ own service centers and employees, especially in IT, whose strategic importance has vastly increased with the advance of digitization this past decade.

Other Priorities Replace Cost-EffectivenessOther Priorities Replace Cost-Effectiveness

“What was once a decision based primarily on cost-effectiveness has now started to incorporate other considerations, for example, whether the function is core to the business, and therefore needs to be brought back in-house, as well as external regulatory factors impacting business relationships, accountability, and the ability to protect intellectual property and customer privacy,” says Erik Peterson, director of A.T. Kearney’s Global Business Policy Council think tank.

A No-Location FutureA No-Location Future

Greater automation and freelance outsourcers will make physical location less relevant. Whereas the last two decades have seen one-location outsourcing, now companies have dozens of locations. But that might succumb to location-less jobs, due to automation and other technologies.

No-Location Threatens Offshore CountriesNo-Location Threatens Offshore Countries

Countries in low-value-add niches may see opportunities erode with the rise of no-location jobs, and will need a strategy to aggressively rise in the value chain and stay relevant.

CIO Insight Staff
CIO Insight Staff
CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need network monitoring technology and solutions to maintain regulatory compliance for their teams and organizations.

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