The threat of “telemigration” in the wake of telecommuting

Teleworking, which was adopted by a multitude of companies around the world during the lockdown, has been widely practiced in recent times. It is believed that the offshoring of workplaces, termed “telemigration” by economist Richard Badwin, will likely become more common in the next few years.

Teleworking on the upswing

Telecommuting has gained popularity and has become more widespread during the health crisis period. According to a study by the Tony Blair Institute for Global Change, the rise of telecommuting is likely to lead to a massive shift in the location of skilled jobs. Indeed, companies that have opted for remote work have obtained confirmation of the possibilities offered by this solution in the accomplishment of certain missions. As a result, many companies looking to reduce their costs are now being tempted by the idea of offshoring skilled jobs. According to the Tony Blair Institute for Global Change, the effects of this phenomenon might be similar to the loss of jobs due to the decline of the manufacturing sector in 1970. In England, nearly 1 in 5 employees work in service jobs that are likely to be offshored. According to economists Alan Krueger and Alan BlinderIn, 40% of jobs requiring a degree would be relocatable in the United States.

Outsourcing of Skilled Jobs

Telemigration is a concept developed by Richard Baldwin well before the Covid 19 period. The term is used for individuals based in one country and working remotely for a company located in another country.

While the effects of globalization have so far affected those working in the industrial and textile sectors, qualified workers are now also affected. Indeed, offshoring via teleworking could potentially affect skilled jobs. Many skilled teleworkers from southern countries are now able to compete with skilled profiles from developed countries. This new form of offshoring is about skilled jobs in the service sector.

Economist Richard Baldwin explains that the massive offshoring of skilled jobs is facilitated by the development of new telecommunications technologies. Many companies have implemented online collaboration tools to improve their communication and simplify exchanges. These collaborative applications coupled with the speed of the 5G network can help accelerate the phenomenon.

Is it a new business “opportunity” ?

The relocation of skilled jobs may involve some risks, but it is also a new opportunity for European companies to deal with labor shortages. Indeed, telemigration is also a key solution that makes it easier to integrate foreign skilled workers into the labor market. The use of freelance teleworkers from emerging countries is more cost-effective than bringing in international employees, especially for small companies.
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