Offshoring: a new industrial revolution?
If we look back at the current era in about 15-20 years, will we be talking about a revolution when we talk about offshoring? Could offshoring become so ingrained in the way we do business, that it truly changes the way we organize labor on a global scale?
In a research, done by two German researchers last year, I found a statement that does indicate this ‘revolution’:
For bigger companies that have bigger projects and processes, offshoring to individuals through a website probably won’t work, because they need teams and continuity. Typically, they outsource the whole project or process to an offshore company. But also here, it is becoming more common to use ‘global staffing’, in which they hire offshore individuals or teams, managed directly by the company.
I believe that in 15 years, we will indeed see the current movement as a revolution. A revolution in the way companies involve people worldwide into their value creation. In the way human beings cooperate. In the way companies attract and keep talent. Offshoring will evolve from ‘outtasking’ and ‘outsourcing’ to ‘engaging talent’. It will not matter where on earth colleagues are located.
Firms will look all over the globe to find the ‘right people’ for any position. People will grow used to having colleagues overseas with whom they communicate through a wire and meet only occasionally. Firms will still try to have ‘organic solidarity among its members’, but with different mechanisms to bind them together, because the members will be spread all over the globe. Organizations will consist of loosely linked networks of individuals and teams located anywhere on earth where people are the best and/or the cheapest at performing certain tasks.