New Competition

I found an interesting (and scary) statistic in the latest issue of CFO Magazine.  In 2008, the percentage of full-time finance jobs moving offshore was 10.5%.  It’s estimated that by the year 2010, that number will increase to 21.6%.  Just like with the exodus of manufacturing jobs to places like China, where labor is very cheap, companies are choosing to outsource their finance and accounting functions to places like India.  I honestly don’t see the logic, value or effectiveness of doing something like that.  I haven’t seen or heard of that in any of my dealings or discussions around the Richmond area.  I think this strategy is more commonly used in mid-size and large companies that have some international exposure- certainly not by businesses that my company would serve.  Even so, this cost-cutting measure is something that all of us should be concerned with.  We’ve seen the ill effects this offshore outsourcing has had on our country’s manufacturing industry.