The future of the

US jobs market –

Outsourcing

Presentation by

Steven Douglas

What do you want to be when you grow up?

List jobs held by the students in the past and those they are planning to get after graduation or in the future.

Top 15 Jobs in the US as of November 20101. Retail salespeople Total employment: 4,209,5002. Cashiers Total employment: 3,439,3803. Office clerks Total employment: 2,815,2404. Fast Food service workers Total employment: 2,695,740

5. Registered nurses Total employment:

2,583,7706. Waiters and waitresses Total employment:

2,302,0707. Customer service reps Total employment:

2,195,8608. Material movers Total employment:

2,135,790

9. Janitors Total employment:

2,090,40010. Stock clerks and order fillers Total employment:

1,864,41011. Secretaries (not including medical, legal and executive secretaries) Total employment:

1,797,67012. Bookkeeping, accounting and auditing clerks Total employment:

1,757,870

13. General managers Total employment:

1,689,68014. Tractor-trailer truck drivers Total employment:

1,550,93015. Elementary school teachers Total employment:

1,544,300

Largest US Employers

1. US Government (non-military) Total Employees: 4 Million2. Wal-Mart (Retail) Total Employees: 1.8 Million3. US Military Total Employees: 1.5 Million4. Kelly Services (Staffing/Temps) Total Employees: 750,0005. US Postal Service Total Employees: 700,0006. McDonalds (Fast Food) Total Employees: 470,000

7. UPS (Express Delivery) Total Employees: 425,0008. IBM (Computer Hardware) Total Employees: 355,0009. Home Depot (Retail) Total Employees: 345,00010. Target (Retail) Total Employees: 335,00011. Citigroup (Finance/Banking) Total Employees: 330,00012. GE (Leasing/Finance) Total Employees: 320.00013. AT&T (Staffing/Telecom) Total Employees: 300,000

Number of U.S. Jobs Moving Offshore

Job Category 2000 2005 2010 2015

Management 0 37,477 117,835 288,281

Business 10,787 61,252 161,722 348,028

Computer 27,171 108,991 276,954 472,632

Architecture 3,498 32,302 83,237 184,347

Life Sciences 0 3,677 14,478 36,770

Legal 1,793 14,220 34,673 74,642

Art, design 818 5,576 13,846 29,639

Sales 4,619 29,064 97,321 226,564

Office 53,987 295,034 791,034 1,659,310

Total 102,674

587,592

1,591,101

3,320,213

Top Outsourcers

IBM 63,700 EDS 22,400 Dell 17,450 Cognizant 15,000 Siemens AG 15,000 General Electric 14,250 Convergys 14,000 Accenture 13,000 CSC 10,800 Intel 10,426

Why are these Jobs being Outsourced?

Payroll and tax preparation Accounting and Bookkeeping Data Entry Bill Processing Diagnostic/Analysis Computer programming and

operating Call center and technical

support Paralegal

Why are these Jobs Safe from Outsourcing

Dental Assistant Fitness Professionals Physical Therapy Aides Teaching Assistants Small Business Owners Occupational Therapy Aides Pharmacy Technicians HVAC Technicians Plumbers Electricians Child Day Care Management Veterinarian Assistants Diesel Mechanics Pet Groomers Small Engine Repair Motorcycle Repair Dog Obedience Trainers Auto Repair Technicians

What US Jobs are Safe from Outsourcing?

Assumption 1 – Manufacturers will continue to outsource… US will become an Import Market.

Imports of Manufactured Products will insure a distribution system in the USA.Jobs for Distribution – Dock Workers/Stevedores US Customs Port Warehousing/Movers Trucking Regional Warehousing Retail Deliveries Retailers Stock workers/Sales People Cashiers Online Distributors Express Delivery/Mail for Online Sales Managers and Line Workers for the Above

What US Jobs are Safe from Outsourcing?

Assumption 2 – Americans will continue to eat but more foods will be imported due to lack of Immigrant migrant workers due to Illegal Immigration laws restricting access to US farms.

Imports of Food Products will insure a distribution system in the USA.Jobs for Distribution – Dock Workers/Stevedores US Customs Port Warehousing/Movers Trucking Regional Warehousing Retail Deliveries Retailers/Supermarkets/Restaurants Stock workers/Sales People/Service Workers Cashiers Online Distributors Express Delivery/Mail for Online Sales Managers and Line Workers for the Above

What US Jobs are Safe from Outsourcing?

Assumption 3 – American Hospitals will eventually outsource services to foreign hospitals or medical companies for analyzing x-rays. Patients requiring heart surgery, brain surgery and other expensive operations where insurance companies do not cover all expenses, will start to go to other countries where these operations are far less expensive.

Jobs that will be negatively affected will include:RadiologistsDoctors - surgicalNurses - RNsHospital Workers – All (fewer patients)

Jobs that may remain safe include:LPN’s / Rehab Workers / OT and PT specialistsAssisted Living – All

The importance of understanding International Business

If these assumptions are correct, US based manufacturers will require managers and executives to travel to foreign countries to oversee JV and manufacturing facilities.