Washington is still battling it out on who will pay exactly how much more taxes. However, on main street USA, the focus is on something a little different. There are still big stories about corporate layoffs, but the economy has been improving. For years, compensation has been flat or falling. In every previous recession, when the economy improves and profits start to rise, workers get restless... and want to have their share of the rise in the economy.
For those firms that have relied on outsourcing as just a way to just take a lot of jobs and move them offshore, and cut costs, the rules are a little different now. Some of the most visible labor unrest is happening offshore, especially in China. Offshore programs can still offer a lot of value, but if you will need to step up your management skills.
In the coming year you can expect to see a rise in costs, especially in offshore outsourcing, as well as turnover in staff as your offshore workers seek promotional positions on other teams if there are no promotional positions on your team. Larger outsourcing firms may have the experience and depth of staffing to deal with these changes, but not every outsourcer will have equal capabilities. Are you ready for the labor battles of 2013?