Latest estimates from Hackett Group predict that 750,000 MORE jobs in finance, IT and “other services” will head offshore from the US and Europe
“Some 750,000 jobs in IT, finance, and other business services will be offshored from the U.S. and Western Europe to developing nations between now and 2016, according to a study released this week by the Hackett Group. Among the positions going overseas will be 270,000 IT jobs.
“In the U.S. and Europe, offshoring of business services and the rapid transformation of shared services into Global Business Services have had a significant negative impact on the jobs outlook for nearly a decade,” said Hackett Group chief research officer Michel Janssen, in a statement. “That trend is going to hit us hard in the short term.”< ----- I would argue that this figure is conservative, although job losses will certainly hit Australia harder than the US, due to our much higher local wages, and particularly our minimum wage for graduates being close to three times the minimum wage in the US. In Australia, some industry analysts have predicted around 250,000 jobs going from financial services alone. My own estimates are that we are heading for over 1 million jobs being offshored. There is currently no government analysis on the exact numbers, but from what I have seen there is probably in excess of 1000 positions per month currently being hired offshore by Australian companies, and that is by a mere 5% of employers. The trend is only just beginning. We need federal political leadership and public debate urgently.