MGI's latest research takes a look at the emerging global labor market in services and explores the notion of "global resourcing," the process a company goes through to decide which of its activities could be performed anywhere in the world, where to locate them, and who will do them. It also explores the real demand and supply of offshore talent.
Part I — The demand for offshore talent in services
Although the practice of offshoring is growing among companies in developed countries, a wide gap exists between the number of service jobs that they could locate remotely and the actual number of jobs that they have located offshore, or plan to offshore, by 2008. The potential for offshoring varies depending on the industry.
Part II — The supply of offshore talent in services
The number of graduates with a university degree and 7 years of experience in low-wage countries exceeds the supply from high-wage countries by two-fold. But the total quantity of graduates that can actually be deployed in offshoring is smaller than the raw numbers suggest.
Part III — How supply and demand for offshore talent meet
At an aggregate level, the supply of suitable talent from low-wage countries exceeds likely demand. Importantly, of all the occupations, engineering has the least supply relative to demand. Offshoring will raise wages in some occupations in the lowest-cost supply countries, but will not significantly impact wages or employment in developed countries.
Shaking up the labor movement: An interview with the head of the Service Employees International Union Andy Stern discusses his ideas for reversing the long decline of US organized labor. Read more on the McKinsey Quarterly site
Perspective: The Philippines offshoring opportunity The Philippines is in a strong position to capitalize on the opportunities of offshoring. However, the government and private sector must work to strengthen both some perceived and real weaknesses. Read more
Ensuring India's offshoring future The country must not only produce more top-quality engineers but also show the world the depth and quality of its talent in other fields - and in cities beyond Bangalore and Mumbai. Read more
Sizing the emerging global labor market Rational behavior from both companies and countries can help it work more efficiently. Read more on the McKinsey Quarterly site
Perspective — China's looming talent shortage The looming shortage of home-grown talent has serious implications for the multinationals now in China and for the growing number of Chinese companies with global ambitions. Read more
Perspective — Exploding the myths about offshoring Offshoring benefits both the U.S. and developing countries. The challenge is in making sure everyone gets a piece of the pie. Read more
