The effects of outsourcing traditionally white-collar jobs is just being felt, and the future full impact will be huge. That’s the findings by the Hackett Group which will formally release a report of their findings this week. According to the Hackett Group, Fortune 500 companies, could potentially save $58 billion annually, or about $116 million per company, just by offshoring general and administrative jobs. While good for the bottom line, it also means that 1.47 million back-office jobs, or nearly 3,000 at a typical Fortune 500 company in the U.S., could potentially be lost.
It’s not just general and administrative jobs that are being outsourced, but also IT, finance, human resources and procurement jobs which are heading oversees. The education base and skill set is improving in countries such as India, China, the Philippines, Pakistan, Eastern Europe, Brazil and other emerging countries. That fact, combined with potential labor cost savings, is making outsourcing a very attractive alternative for big business to consider.