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More Canadian companies sourcing talent globally: report

Long term prospects, however, remain uncertain.


May 23, 2012
by PLANT STAFF

TORONTO: Faced with global skills shortages, Canadian employers are increasingly turning to global resourcing to find and attract talent, but when asked whether that will continue in the long-term, their answer is: we don’t know.

According to the IT staffing outlook for 2012, a survey of Canadian business decision-makers commissioned by Randstad Technologies and IBM Canada , almost half of the survey respondents say they currently use global resourcing, in contrast with approximately one-third in 2009 and 2010.

Survey results indicate global resourcing continues to be most prevalent among large organizations and those with international operations. These companies list the reduction in cost as the primary reason for using offshoring (84%), while access to skill bases (44%) and 24/7 services (39%) are also important.

Mike Winterfield, president of the professionals division at Randstad Canada says global competition, pressure to do more with less, and the need for highly skilled technical resources has led employers to look at non-traditional solutions to their staffing challenges.

“In recent years we’ve seen the continued spread of globalization. Managing talent is the most challenging issue facing employers and as the world becomes increasingly borderless, companies are looking to attract and retain talent on a global basis,” he says.

The most commonly cited job functions for company’s currently using offshoring include Application Development (61%), Help Desk (40%), Data/Database Management (23%) and Server Systems (19%).

Additionally, current offshoring users say they are less sure of their plans to increase or decrease their use of offshoring compared to 2010, and non-users report to be even less certain of their plans to start using off shoring at all.

Winterfield acknowledges that while offshoring can provide access to new labour and talent pools, and may generate labor cost savings, it also has its challenges.

“Some of the drawbacks include reduced control over people and processes, potential loss of intellectual capital, possible cultural differences and high turnover rates. There are many cultural barriers to overcome when recruiting abroad, brand recognition has to be established and compensation structures to be understood,” he says.

Click here for a copy of the full report.