There is potential risk employees face in asking to work remotely on a permanent basis, the company could outsource their job to India instead to save 40% in labour costs.
Work from home has seen an increase during the Covid-19 pandemic however the jobs that could be completed fully remotely are at risk.
Andrew Lokenaut shared a Tweet saying, “An employee asked to go remote. The CEO made the job remote and then outsourced her job to India. The CEO of the Society for Human Resource Management said that outsourcing the job saved the company around 40% in labor costs. The trend of outsourcing jobs to overseas workers is likely to continue in the coming years.”
“This will be driven by a few factors such as the increasing availability of high-speed internet and the growing pool of skilled workers in developing countries”, the tweet added.
An employee asked to go remote. The CEO made the job remote and then outsourced her job to India.
— Andrew Lokenauth (@FluentInFinance) April 12, 2023
The CEO of the Society for Human Resource Management said that outsourcing the job saved the company around 40% in labor costs.
The trend of outsourcing jobs to overseas workers is…
According to the reports of Business Insider, an employee working with the Society for Human Resource Management had suggested that the employee wanted to work remotely.
The company’s CEO, Johnny Taylor Jr. on the other hand decided to outsource their position in India. Post the offshoring of the position the company saved around 40% in labor costs.
The company had been working on a hybrid work policy. The company has been allowing its employees to work from home on Friday and Monday.
Why Do Companies Outsource?
Outsourcing allows companies to contract out some of their business functions and helps them reduce loss, increase profit and save time. Outsourcing work can greatly improve job prospects and earning potential.
Additionally, the main reason the companies save the labor cost is that the average compensation for technical jobs is lower in India as compared to the US.
