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Wednesday, July 25, 2007

Sizing the emerging global labor market

The topic of offshoring generates extreme differences of opinion among policy makers, business executives, and thought leaders. Some have argued that nearly all service jobs will eventually move from developed economies to low-wage ones. Others say that rising wages in cities such as Bangalore and Prague indicate that the supply of offshore talent is already running thin.


To a large extent, these disagreements reflect the confusion surrounding the newly integrating and still inefficient global labor market. Much as technology change is making it possible to integrate global capital markets into a single market for savings and investment, so digital communications are giving rise to what is, in effect, a single global market for those jobs that can now, thanks to IT, be performed remotely from customers and colleagues.

Complete article at : McKinseyQuarterly