Offshore Tech Talent and Growing Remote Industry - The Khuram Dhanani Foundation
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Offshore Tech Talent and Growing Remote Industry

Offshore Tech Talent and Growing Remote Industry

The world is growing into a more unique place where jobs that traditionally were performed in office spaces within companies are now performed by people in remote areas in different countries. The growing industry of remote positions such as offshoring provided jobs like IT support and staff call centers to people in different countries for cheaper pay. While there have been arguments stating this business practice was taking opportunities away from domestic jobs, the different prospects for better pay helped people. Countries such as the United States and the United Kingdom, rely on offshoring to provide better chances for people in other areas. Today offshoring has become a way to provide opportunities for rising talent in the field of web design, coding, and other technology-based work. 

What is Offshoring?

Offshoring has become the new way to gain talent, especially in technology-based industries for remote positions. Businesses face a shortage in the technology field and use social media-based sites, like LinkedIn, to recruit new talent and provide them with jobs remotely. People like Sebastián, a web developer, were thankful to receive job opportunities from the United States and the United Kingdom for better salaries. The employees hired remotely for companies in the U.S. and UK usually receive a payment that is great for the living wage of where they live but still one-fifth of what their non-remote employees are receiving. 

Does Offshore Work Provide a Living Wage?

The living wages for people in areas like Mexico and India are significantly lower than those in the U.S. and UK. In Mexico, the average living wage for a person is equivalent to $345 a month. Software engineers make a monthly salary of $3,145 in places like Latin America which can provide a comfortable life. The salary amount provided to remote workers allows companies to hire people from overseas without having to compete for local talent in the same field for a higher wage. While it is not every company some companies have listened to the complaints of their offshore employees and have provided equal benefits for both in-person and remote workers.  

What Are Some Issues Involving Offshoring?

While the prospects of offshoring can have advantages for both the company and the employee there are some drawbacks to the jobs. People who have thought about working for these companies like Sebastián noticed a lack of benefits such as health care, paid time off, and stable income. The inequality treatment remote-based employees receive is due to companies would tell potential remote employees they would be labeled independent contractors in hopes of saving money. 

Being labeled as an independent contractor the work could be considered a gamble as many could face not receiving the same benefits as their domestic-based co-workers. There are numerous disadvantages that come with being an independent contractor; it puts people on the line for the responsibilities of starting a business. Many independent contractors face the issue of having to pay taxes when reporting their income, hoping the businesses they work for are producing a profit to make a paycheck and setting up their own health insurance. The unfortunate outcome for many independent contractors is the possibility of facing bankruptcy. Companies that hire new talent as independent contractors do place their workers in this situation to save money for their company. 

What Are Some Companies that Participate in Offshore Hiring?

Offshoring is a growing employment opportunity for many as it provides hiring chances for many in areas where the wages are low. The growth of offshore opportunities is happening and many employees in remote positions have stated they enjoy the chance to be a part of companies as web developers, coders, and software engineers. Companies like IBM, Amazon, and Ford Motor Company are just a few examples of those that support offshore hiring. Many businesses use remote workers to increase customer satisfaction without overworking their staff. While there are companies that failed in successfully using this strategy there are others that found a way to make it a successful part of their business. 

Does Hiring Offshore Employees Aid in the Company’s Success?

Companies that hire talented offshore workers can receive advantages in creating a successful company. Amazon, IBM, and Ford Motor Company were able to hire offshore employees and offer customers of the companies a 24/7 assistance line due to outsourcing calls to different time zones. Other businesses like General Electric were able to use offshore bases to communicate with company employees. Hired offshore employees may also have to deal with unfinished work from their co-workers because of their ability to work at flexible times. A decrease in stress due to employees not having to worry about unfinished work also can aid in the company’s success. 

People that are hired for offshore work sometimes find it to be beneficial financially in certain areas. While the prospects of using remote work may be advantageous to both employee and employer there can be some issues depending on who’s hiring. Many workers are still labeled as independent to save money for the company, but this can cause a good amount of stress on the person hired. People unable to gain a stable income could result in inadequate work or a bad experience. Workers require the equal respect and benefits of their in-person counterparts to provide peace of mind and a successful employee. 

Is Doing Offshore Work a Good Choice?

For many people doing offshore or remote work is a growing field that is changing to do more than just customer support. The use of social media makes it easier to find talented technology workers from all over the world willing to work in their country. The positives of providing people from anywhere with a job that doesn’t require the financial stress of moving shows the progression made in the job market. While many companies still may not agree with the issue of providing benefits or labeling them as permanent employees offshore work is a thriving opportunity for many.