Another look at offshoring: Which jobs are at risk and why?

Abstract

Many recent articles regarding offshoring have made sweeping, industry-wide generalizations about the impact of this process, but have not typically addressed the specific types of jobs that are at risk and why. In this paper, we develop a framework that integrates several key variables–the (changing) need for proximity, the regulatory environment, firm-level security and intellectual property rights concerns, and the socio-political context within which the offshoring phenomenon is unfolding–which collectively help explain how vulnerable particular jobs are to offshoring. We use this framework to examine what types of healthcare and information technology jobs are most and least at risk to offshoring, and suggest extending this model to other industries in order to better understand which jobs are most vulnerable to offshoring and why.