Home Updated on April 18, 2005  
Many Faces of Outsourcing
Rise in offshore jobs expected, says Jones Lang LaSalle Inc. survey

Eighty percent of real-estate executives for major companies say they are likely to increase their offshore call centers and computer services over the next five years, according to a new survey, reported The Wall Street Journal.

The effects will not be felt in the major metropolitan office markets but will, instead, fall on suburban and secondary U.S. markets. The majority of the executives say they are creating new jobs overseas instead of replacing U.S. jobs. But 42.5% say they are transferring U.S. jobs overseas, according to the survey of 40 Fortune 1000 companies by Jones Lang LaSalle Inc., a Chicago-based commercial real-estate services provider.

The movement will affect different types of U.S. markets in different ways, says Bruce Rutherford, an international director for Jones Lang LaSalle in Houston. The movement of call centers overseas will have the most impact on secondary markets, while information-technology job losses will continue to hit tech-heavy markets like Silicon Valley and Boston. Back-office job losses will hurt suburban office markets, particularly in the south and Southwest, Rutherford says. The trend is almost completely driven by labor costs, not by any savings in real-estate costs.



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