Next wave of digital outsourcing of white collar jobs starts

The pandemic years set the stage for the next wave of digital outsourcing, which will mostly affect white-collar jobs.

First, remote working became the “new normal.” Second, many white-collar jobs, from office administration to legal help and design, have been digitalized via Zoom and other online collaboration platforms. Third, companies and organisations have accelerated the migration of their archives and operational assets to digital clouds.

The framework for the next wave of digital outsourcing has been set. According to the Economist, it has the potential to generate a half-trillion-dollar economy.

Digital outsourcing will happen in fast-changing circumstances with less input from Ukraine and Russia, important outsourcing and software development economies. Geopolitical tensions with China and ‘de-globalisation’ trends will affect the geography of outsourcing.

India will be the main winner of the new wave of digital outsourcing. Already, outsourcing makes up 5.6% of the Indian economy. However, it won’t be plain sailing for India’s outsourcing industry due to a few problems:

  • a push for outsourcing in the same region and time zone;
  • drive in many countries to reduce cross-border data flows, especially in critical and confidential domains;
  • protectionism and push for employing the local workforce.

In these circumstances, new possibilities for digital outsourcing will open for neighbouring regions to Europe (Balkans and Mediterranean)  and the United States (Central and South America).