Briefly describe offshoring in job analysis and susceptibility to offshoring.

Question

What will be an ideal response?

Answer 1

Offshoring refers to the movement of jobs to locations beyond a country's borders. Historically, manual, low-skill jobs were most susceptible to offshoring. There are substantial differences in hourly compensation costs across countries for manufacturing workers; this has played an important role in companies' decisions about where to locate production operations. Similar differences in cost in other low-skill occupations (e.g., in call centers) have had similar ramifications. There are productivity differences across countries as well, meaning that lower labor costs may in some cases be offset by lower productivity. Availability of workers with needed education and skills is another potential constraint. Proximity to customers is yet another issue. 

Increasingly, susceptibility to offshoring is no longer limited to low-skill jobs. White-collar jobs are also increasingly at risk. Jobs are most susceptible to outsourcing when inputs and outputs can easily be transmitted electronically, little interaction with other workers is required, little local knowledge is required, and the work can be routinized.