Amidst the outcry in the US over outsourcing, a new report released on Monday said service offshoring would have a modest impact on its job market, although Silicon Valley, the country's technology hub, will be among the hardest hit.
Researchers expect employers to ship out about 3.4 million US service jobs to lower wage countries between 2000 and 2015, out of a civilian labour force of 153 million in January 2007, said the Brookings Institution, a Washington-based research group.
Metropolitan areas with large concentrations of information technology service jobs or backoffice jobs are generally more vulnerable to service offshoring than other metropolitan areas.
Of the 246 US metropolitan areas, 28 areas, with 13.5 per cent of the nation's population, are likely to lose between 2.6 and 4.3 per cent of their jobs to service offshoring between 2004 and 2015, which is higher than the average loss of no more than 2 per cent among the metropolitan areas studied.
According to the report, service offshoring is likely to cause the loss of 2.6 per cent of jobs in metropolitan areas that specialize in information technology services and 2.4 per cent of jobs in metropolitan areas that specialize in back-office services but only 1.9 per cent of jobs in other metropolitan areas.
San Jose and San Francisco (California); Boulder (Colorado); Lowell (Massachusetts) and Stamford (Connecticut) stand to lose the most, with 3.1 to 4.3 per cent of their jobs expected to move offshore between 2004-2015, the report said.
At least 17 per cent of computer programming, software engineering, and data entry jobs are likely to be offshored in particular metropolitan areas.
Employment of computer programmers, data entry keyers, and software engineers (applications) is projected to fall by at least 17 per cent between 2004 and 2015 San Jose, San Francisco and the Orange County in California.
Among other cities experiencing similar decline are Bergen-Passaic and Newark (New Jersey); Boston, (Massachusetts); Boulder and Denver (Colarado); and Danbury and Harford (Connecticut).
In Bergen-Passaic, 14 to 17 per cent of customer service representatives' and insurance underwriters' jobs are projected to move abroad.
Job losses from service offshoring between 2004 and 2015 are projected at 2.4 per cent for metropolitan areas with populations of one million or more but only 1.7 per cent for metropolitan areas with populations below 250,000.
About 2.3 per cent of jobs in Northeastern and Western metropolitan areas are likely to be offshored, compared to 2.2 per cent in Midwestern metropolitan areas and 2.1 per cent in Southern ones, the report added.
There has been growing protest against outsourcing of jobs, most of which have moved to India and China, especially from labour unions in the US.
The report recommends that to reduce vulnerability to service offshoring, federal, state, and local leaders should work in concert to pursue policies that boost productivity and innovation, assist workers who are harmed by offshoring, and modernize approaches to economic and workforce development.
Courtesy : Expressindia.com
Researchers expect employers to ship out about 3.4 million US service jobs to lower wage countries between 2000 and 2015, out of a civilian labour force of 153 million in January 2007, said the Brookings Institution, a Washington-based research group.
Metropolitan areas with large concentrations of information technology service jobs or backoffice jobs are generally more vulnerable to service offshoring than other metropolitan areas.
Of the 246 US metropolitan areas, 28 areas, with 13.5 per cent of the nation's population, are likely to lose between 2.6 and 4.3 per cent of their jobs to service offshoring between 2004 and 2015, which is higher than the average loss of no more than 2 per cent among the metropolitan areas studied.
According to the report, service offshoring is likely to cause the loss of 2.6 per cent of jobs in metropolitan areas that specialize in information technology services and 2.4 per cent of jobs in metropolitan areas that specialize in back-office services but only 1.9 per cent of jobs in other metropolitan areas.
San Jose and San Francisco (California); Boulder (Colorado); Lowell (Massachusetts) and Stamford (Connecticut) stand to lose the most, with 3.1 to 4.3 per cent of their jobs expected to move offshore between 2004-2015, the report said.
At least 17 per cent of computer programming, software engineering, and data entry jobs are likely to be offshored in particular metropolitan areas.
Employment of computer programmers, data entry keyers, and software engineers (applications) is projected to fall by at least 17 per cent between 2004 and 2015 San Jose, San Francisco and the Orange County in California.
Among other cities experiencing similar decline are Bergen-Passaic and Newark (New Jersey); Boston, (Massachusetts); Boulder and Denver (Colarado); and Danbury and Harford (Connecticut).
In Bergen-Passaic, 14 to 17 per cent of customer service representatives' and insurance underwriters' jobs are projected to move abroad.
Job losses from service offshoring between 2004 and 2015 are projected at 2.4 per cent for metropolitan areas with populations of one million or more but only 1.7 per cent for metropolitan areas with populations below 250,000.
About 2.3 per cent of jobs in Northeastern and Western metropolitan areas are likely to be offshored, compared to 2.2 per cent in Midwestern metropolitan areas and 2.1 per cent in Southern ones, the report added.
There has been growing protest against outsourcing of jobs, most of which have moved to India and China, especially from labour unions in the US.
The report recommends that to reduce vulnerability to service offshoring, federal, state, and local leaders should work in concert to pursue policies that boost productivity and innovation, assist workers who are harmed by offshoring, and modernize approaches to economic and workforce development.
Courtesy : Expressindia.com