Duke Study Looks At Offshoring Jobs

Jan 21, 2011

A new report from Duke University’s Fuqua School of Business shows a shortage of skilled workers in the U-S may be one of the main reasons for the off-shoring of American business service jobs.  Arie Lewin is a Duke professor of strategy and international business.  He says American companies in I-T services and software development are not saving money by off-shoring

"They basically went through a discovery process to discover all the hidden costs they didn’t know about when they went there. And secondly, wage inflation in those hot spots, and the fact that you have to deal with high turnover and you’re competing with other companies that are competing for the same talent."

Lewin says more than half of those surveyed say off-shoring has not led them to cut their domestic work-force.  Duke’s database at the Center for International Business, Education and Research tracked more than 43-hundred different off-shoring projects.