Employee Asked to Go Remote, Job Outsourced to India: WSJ

  • CEO Johnny Taylor Jr. told the WSJ that he outsourced an employee’s work after she requested that he be remote.
  • Hiring someone from India saved the company about 40% on labor costs, he told the Journal.
  • Since the pandemic, some tech companies have hired remote workers overseas, sometimes amid layoffs.

A CEO Wall Street Journal story highlights a potential risk that workers may face by asking their boss to let them work remotely permanently: the company could instead outsource their work.

That’s what happened when a Society for Human Resource Management employee who wanted to change states suggested she could work remotely in her technical role in the United States, the CEO of the company said. company, Johnny Taylor Jr., at the Journal.

Taylor instead decided to outsource the employee role to someone in India, and offshoring the position saved around 40% on labor costs, he said. at the WSJ. Taylor and SHRM did not immediately respond to Insider’s requests for further comment.

Taylor isn’t alone in seeking to exploit foreign labor — where the average pay for tech jobs is often far lower than in the United States.

Remote work for American workers has exploded during the pandemic. But as some companies continue to struggle to find workers and companies seek to cut costs, relocation positions overseas could see an increase, Insider’s Jacob Zinkula previously reported.

It could hurt white collar in the United States in particular – a group that has been particularly affected by layoffs this past year. If more U.S. companies outsource, meaning they open their job openings to foreign workers, white-collar workers could find themselves competing against a global pool of candidates.

Some tech companies have already turned to work abroad, including in Latin America, Europe, Africa and the Middle East, reported Aki Ito of Insider. This is a sea change for an industry that often prioritizes in-person collaboration, Ito reported, and the number of companies considering this option is growing. Companies looking to hire engineers in the United States or Latin America jumped 75%, tech-recruitment platform Laskie reported in March. A year ago, 55% of companies were considering American and Latin American candidates.

“American tech companies are saying, ‘We can hire an engineer in the United States for $300,000 or we can hire someone great internationally with very similar experience for $75,000,'” Chris Bakke said. , CEO of technology recruitment platform Laskie. told the insider.

However, only positions that could be completed entirely remotely are likely to be impacted. And the number of remote positions offered in the United States has been steadily decreasingespecially since more and more companies are imposing return to work policies. While working entirely remotely in the United States peaked at 60% in 2020, in March, only about 13% of job postings in the US were remote, according to recruitment firm Manpower Group. The previous year, 17% of job postings offered remote work.

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