Talent Availability Rather Than Labor Cost Seen Driving Offshoring

Oct. 31, 2006
Access to qualified personnel is now most important decision factor, says Duke University/ Booz Allen Hamilton study.

Low-cost labor is no longer the most important factor in decisions on moving work offshore; access to qualified workers is, contends a Duke University/Booz Allen Hamilton study released on Oct. 31. Indeed, indicates the study, companies are increasingly moving product design, R&D, and other relatively sophisticated operations to China, India and other places offshore primarily because they can provide the highly skilled engineers and science workers who are in short supply in the U.S. and Europe.

The study took a look at 530 companies in the U.S. and Europe.

Nearly three-fourths of the companies establishing or expanding product development offshore said "access to qualified personnel" was the most important driver of their offshoring strategies. Almost 70% said site selection was based on the availability of qualified workers.

Popular Sponsored Recommendations

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!