more-arw search

Global Hiring Trends Move Previously Foreign Jobs Back To U.S.

The highly publicized trend of moving U.S. jobs to other countries that existed in previous years has recently reversed, as multinational corporations have begun hiring American workers for specific

The highly publicized trend of moving U.S. jobs to other countries that existed in previous years has recently reversed, as multinational corporations have begun hiring American workers for specific positions that benefit from being in the area. Companies may benefit from knowing these trends as well as the concerns that cause them when they are engaged in the process of forecasting.

Changing Hiring Trends

Bloomberg reports that several major companies including global conglomerate General Electric Co., Indian outsourcing services provider Infosys Ltd. and carmaker General Motors Co. are starting to add workers in the United States.

These firms have stated that certain tasks such as human resources and software development can benefit from being located closer to the markets they serve, according to the news source. Many global firms are encountering challenges when they want to obtain visas for Indian workers. These companies are also being provided with incentive to hire domestically in order to obtain tax advantages.

When the most recent wave of outsourcing happened in the United States, it resulted in many manufacturing jobs being moved to other countries. During this transition, many firms realized that services can be provided more effectively if they are administered by staff members that are closer to the market. Companies can benefit from this information when contemplating the payrolls portion of their budgeting plans.

Bringing Jobs In-House

Computer Weekly reports that General Motors is bringing a lot of IT roles that were previously outsourced back in house. The company has recently announced that it will hire 3,000 workers from technology giant HP.

Mark Lewis, head of outsourcing at law firm Berwin Leighton Paisner, told the news source that there are three major factors that would trigger insourcing - strategic goals, supply chain challenges, and short-term tactical needs. He said that if suppliers do not produce what they are supposed to, their clients can simply bring the business services provided in-house.

Changing Priorities 

"It used to be just about getting the job done at the lowest cost," Madhusudan Menon, who is in charge of Infosys’s Atlanta center and also the delivery of U.S. business-process outsourcing, told Bloomberg. "Now companies are saying some jobs are best done closer to where they are, not cheap as possible somewhere else. They’re rebalancing their onshore and offshore outsourcing."

Corporate data provided by Miami-based consulting firm the Hackett Group indicates that during the last 10 years, U.S.-based corporations with more than $1 billion moved a total of 1.1 million jobs related to technology and back-office functions overseas, according to the media outlet.

The company has predicted that the migration of positions to countries aside from the United States will decelerate starting next year, but has also estimated that a total of 400,000 jobs will move to these foreign nations through 2016, the news source reports.

In addition, a survey of executives in the outsourcing industry conducted by Boston-based HfS Research revealed that the United States is thought of as being the best location to hire staff for the purposes of IT and business services, while India is the next-best.

The shift in corporate sentiment resulting in these firms preferring to hire in the United States for certain roles instead of in foreign countries could be valuable for major corporations that are assessing labor costs when they are engaged in budgeting activities. These firms should be sure to be aware of not only of what it costs to hire a person in a certain location - for example the United States - but also the other benefits whether they are strategic or tactical. 

Products and Companies: