Outsourcing in North Carolina Impacting Tech Jobs Across the Board

Outsourcing

Companies Looking for Cheap IT Providers Look to India

North Carolina has experienced a number of job cuts as a result of companies turning towards outsourcing.

Many companies across the state have cut hundreds of jobs in order to replace them with cheaper alternatives in India and therefore continue the trend of outsourcing that has long plagued the IT sector and other tech-related jobs.

At the beginning of June, Lowe’s Companies, Inc. (NYSE:LOW) laid off abut 125 tech workers, mostly at its Mooresville corporate office, and moved those jobs to its Bangalore, India office. This move came on the heels of a further reduction of 96 corporate IT positions in October 2016.

Wells Fargo & Co (NYSE:WFC) has also announced that it is eyeing outsourcing jobs, although the exact number of employees at risk is unknown. Wells Fargo is claiming that the move is an effort to change its corporate structure following a sales scandal that occurred in September.

Finally, Ralph Lauren Corp (NYSE:RL) slashed 107 jobs in Kernersville, Greensboro, and High Point. Though the company did not disclose if these were IT jobs that were being moved overseas, it did say that some of the workers eliminated were having their responsibilities outsourced to a third-party vendor that has offices all over the world, including India.

Both Bank of America Corp (NYSE:BAC) and Lowe’s currently have job listings for their offices in Mumbai, with Bank of America looking to fill 140 positions in that range, from software engineers to human resources consultants, while Lowe’s has dozens of listings for its Bangalore office.

The major issue stems from costs. After all, why pay a higher price when a cheaper substitute exists with little to no loss in quality? Brady Teague, a principal overseeing IT at the staffing firm TalentBridge, said as much in an interview with The Charlotte Observer.

“You can hire a programmer in Charlotte for $60,000 to 80,000 a year, or you go to India and get the same quality of service for $60 a month,” Teague said. “Where are you going to put the person?”

Outsourcing played a prominent role in the campaign of President Donald Trump, as he declared that he would halt the process and bring back American jobs. So far, the results have been unclear as to what effect the president has had on the outsourcing issue facing many American industries, especially tech.

 

Sources

Despite Trump’s criticism, companies in Charlotte are sending more jobs overseas,” The Charlotte Observer, June 19, 2017.

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