Talent Management - July 2008 - (Page 52)

dashboard by Matt Ferguson and Mary Delaney Offshoring and the Impact on Talent Management In a world made smaller by technology and innovation, companies are weighing the most cost-effective and operationally effective options to run their business globally Offshoring is a workable . solution, but talent management can get lost in translation. In the 2008 “Jobs Without Borders” survey of more than 3,000 employers conducted by CareerBuilder.com and researchers at the Wharton School of the University of Pennsylvania, 51 percent of hiring managers said they believe offshoring is necessary to compete in a global economy. Fifteen percent project more than 20 percent of their jobs will eventually be sent overseas, and some 39 percent project more than 10 percent of their jobs will be offshored at some point. Industry experts are quick to point out this does not signify a reduction in U.S. employment levels, however. One in four employers (28 percent) said offshoring has enabled them to create new, better jobs of different types in the U.S. Organizations across the U.S. are harnessing the powers of global intellect and investing in special teams to help set up operations, manage transitions and foster further growth. Cisco even hired a chief globalization ofﬁcer to lead the company’s global growth strategy and oversee the implementation of the company’s $1.1 billion investment in India. In “Jobs Without Borders,” 13 percent of employers said they would outsource work to third-party vendors outside the U.S. in 2008, similar to ﬁndings for 2007. Some 9 percent planned to offshore job functions to foreign afﬁliates in 2008, up from 7 percent in 2007. Whether the decision is under way or being considered down the line, offshoring brings a number of talent management challenges. Organizations must manage cultural and communication issues, employment branding and employee relations. Offshoring Trends and Workforce Impact Offshoring is crossing into new areas, increasing vulnerability for high-skill jobs once thought immune to global competition. Nearly 30 percent of employers surveyed by CareerBuilder.com and researchers at the Wharton School reported more high-skill service positions are migrating overseas to third parties or foreign afﬁliates. Some 69 percent of employers believe highskill service positions are at equal or more risk of being offshored than low-skill jobs. The use of low-cost labor overseas, commonly associated with manufacturing and back-ofﬁce functions, has expanded into other areas. High-skill jobs at risk are concentrated in technology and include computer 52 July 2008 talent management magazine www.talentmgt.com http://CareerBuilder.com http://CareerBuilder.com http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - July 2008

Talent Management - July 2008 Editor’s Letter Human Performance Leading Edge Learning Connections Guest Editorial Passive Candidate Recruiting: Evolving with a Changing Workforce How Do They Feel? Sec Regulations and Executive Compensation Performance Management: A Retail Perspective Train the Non-Trainer Management-Go-Round: Developing Future Leaders Netflix Creates Its Own Script for Talent Management Intuit Spotlights Strategic Importance of Global Employee Recognition Make HR a Profit Center: Automate Technology to Gather Tax Credit Data Offshoring and the Impact on Talent Management Advertisers’ Index Editorial Resources Full Potential

Talent Management - July 2008

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