Offshore outsourcing in information technology, finance and other back office functions such as human resources has cut 1.1 million jobs since 2008 and will result in another 1.3 million positions lost by 2014 in North America and Europe, concludes a benchmark from The Hackett Group.
Since 2000, outsourcing has led to a total reduction of 46% of jobs in these functions. The consulting firm also concludes that the job loss rate due to offshore outsourcing has accelerated each year.
Finance surpasses IT
According to the report from The Hackett Group, IT outsourcing is the domain which has cost the most jobs. The good news for technology workers is that growth in offshore IT outsourcing is leveling off. On the other hand, finance offshoring will grow at a rapid rate. As a result, Hackett estimates that by 2014 the annual number of finance jobs lost due to offshore outsourcing will eclipse IT for the first time
An overview of the job loss per year: