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News Reports & Surveys... (September 16, 2005 - GlobalSourcingNow) - After targeting India and the Philippines as the prime destinations for offshoring technology and call-center jobs, major US companies are increasingly looking towards Latin America to meet their 'nearsourcing' requirements. Dell and Procter & Gamble (P&G) are some of the major MNCs heading to the Latin American countries to source such services. According to Federico Cartín, Executive Director, Costa Rican Chamber of Information and Communication Technology (ICT), the number of call-center positions alone is expected to double in the next two years. As per Datamonitor figures, the number of call-center workstations in the Latin American region as a whole will touch 730,000 in 2008, up from 336,000 in 2004. One of the prime reasons for the attractiveness of these destinations is the lesser geographical distance, as compared to prime offshore destinations. According to a survey by PricewaterhouseCoopers (PwC), more financial
companies around the world expect to offshore their work over the
next few years to cut costs, although many firms are unhappy with
the service they get. The survey predicted that around 29 percent
of company executives expect to move as much as 10 percent of their
payroll offshore in three years' time, nearly double the percentage
of those who now have such a proportion of their workforce offshore.
Offshoring has drawn criticism from politicians and employees in
developed countries who are fearful that the trend could result
in job cuts. The trend comes at a time of faster communications,
expanding use of the Internet and competition for business from
countries such as India with a growing and educated workforce. The
report forecasts that the international market for business outsourcing
could reach USD 130 billion in 2005. However, while cost cutting
is seen as the main reason for offshoring business func According to a study by Datamonitor, outsourced call center agent positions in the US are losing their share of the global market. The study predicts that nine out of ten jobs lost in the US will be outbound telemarketing jobs, as a result of the Do-Not-Call registry and the higher revenues offered by inbound work. In 2004, 37 percent of the world's outsourced contact center agent positions were in the US. By 2008, Datamonitor expects the number to shrink from 315,000 to 291,000, bringing down the share to 25 percent. The report reveals that tight profit margins are driving outsourcers to move offshore and automate where viable. According to the latest employment statistics, offshore outsourcing
of IT and call center jobs to low-cost countries has not impacted
UK jobs. As per the ONS Labor Market Trends figures, employment
growth in call center related occupations in the UK has been nearly
three times the overall growth in employment, while redundancy levels
have also consistently fallen since 2001. The report adds that the
employment data calculated by region is also in line with that growth
trend and suggests that offshoring had minimal effect on the employment
prospects of IT-enabled occupations across the UK. |
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