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Really what they need to change are the accounting loopholes. When I was working at a large employer most of the offshored work was under 'services contracts'
by matt_s 10y ago
Really what they need to change are the accounting loopholes. When I was working at a large employer most of the offshored work was under 'services contracts' where the legal wordings were such that it looks like services are being rendered for a specific purpose. This is to avoid having those people show up as labor on a P&L which affects the corprate bottom line.
What actually happens is behind these agreements are a team of people with an onshore presence and the actual employees overseeing the on/offshore work prefer to work with the same set of people. Once you get a team and rhythm going on work, it made things easier to predict. So both sides want to game this 'services contract' to have the same team for literally years.
If they make corporations count all of the on/offshore people as contractual labor in their accounting practices, which is what they actually are, then companies will be hit negatively in their P&L statements. These are essentially jobs which used to be done onshore so they certainly weren't 'talent can't be found' types of roles.
- koolba 10y agoContractual labor is a service. If it wasn't, it'd be employment. Both show up the same way on a P&L statement; they're both expenses. It's all the additional regulation and requirements for employment (healthcare coverage, disability insurance, termination protection) that companies want to avoid by hiring contractors.