Will Offshoring Impact U.S. Businesses and Workers?

RICHMOND, Va. - Jan. 26, 2023 - PRLog -- With the current popularity of virtual work and inflation at a high, will more businesses look to outsource tasks to offshore workers? If so, the U.S. labor force could look drastically different within the next 5-10 years.

Offshoring work to other countries has become a growing trend. When the U.S. economy crashed in 2019, it hit small businesses hard. Post-pandemic, the economy is still struggling, which has caused prices to increase. This includes the cost of labor. Roughly 300,000 jobs are outsourced out of the U.S. each year according to a Zippia study. Out of the 66% of businesses that outsource, 59% state their decision to outsource was influenced by the ability to save on costs.

Gia Wiggins, the owner of Morale Resource, had to say about offshoring:

"It isn't about where they are, but the skillset I need to do the work."

In the U.S. the average hourly rate of a VA is $20, but in other countries, people will do the same work for as low as $5 an hour. The primary reason being the cost of living is much lower. In addition, outsourcing offshore can appeal to businesses because of the time differences. Being in different time zones can allow companies to operate and be available to customers during more hours of the day. Offshoring also allows businesses to divide and conquer in more efficient ways.

In a survey conducted by DCA Virtual Business Support (https://dcavirtual.com/), small business owners reported that offshoring more generalized tasks like order fulfillment, customer service, podcast production, and other repetitive routine tasks allowed for its U.S.-based workers to focus on areas of the business that operate best in the states. These tasks include licensed services, design work, community outreach, and event management.

Offshoring out of the U.S. does have its downsides. There can be cultural and language barriers that make daily operations difficult, along with quality control issues. Though the time difference may be appealing to some companies, it can also pose a challenge to others. However, the most controversial disadvantage is the displacement of U.S. jobs.

This is what the founder of Higher Effect, Jennifer Scott, said regarding the importance of U.S.-based virtual workers:

"Our higher purpose is to help small businesses grow, creating jobs in the communities that we serve. In my words, to boost the U.S. economy one small business at a time."

The question remains; will the pros of offshoring U.S. work to other countries outweigh the cons? Will the trend of offshoring drastically change the workforce landscape for U.S. workers?