White-Collar Jobs Are Being Outsourced

With the COVID-19 pandemic, people began to witness the adoption and increase of working remotely. Economists believe this new remote-work revolution has the potential to greatly disrupt the job market. Richard Baldwin, an economist at the Graduate Institute in Geneva, warns remote, white-collar workers. He states that if their jobs can be done remotely, then there may be thousands of offshore workers capable and willing to do it for much less.

Outsourcing White-Collar Jobs

Remote work has reshaped America’s workforce. With many jobs becoming digitalized, many employers are considering outsourcing. In addition, wages are increasing and the talent market is decreasing. Thus, providing an even better reason for employers to outsource.

Economists believe white-collar jobs will go global, with employees working from anywhere. However, they are unsure if this change will occur suddenly or in the next decades. For instance, there have already been small clusters of white-collar jobs being outsourced. But, there is little evidence to support a rapid switch to outsourcing.

Nevertheless, the recent pandemic caused major changes in society, such as transitioning to remote work. As a result, these now remote, white-collar jobs face outsourcing to offshore workers ready to do the same work for less pay.

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Dam, A. V. (2022, August 26). Analysis | will remote work make it easier to ship white-collar jobs overseas? The Washington Post. Retrieved from: https://www.washingtonpost.com/business/2022/08/26/remote-work-outsourcing-globalization/