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News » Tech innovation led 20% of U.S. firms toward outsourcing

Tech innovation led 20% of U.S. firms toward outsourcing

NEW JERSEY, UNITED STATES — Nearly 20% of companies are using more outsourced contractors, while 10% are offshoring their operations as technology redraws the borders of work.

During an interview with CNBC’s The Exchange, The Economist Global Business & Economics Correspondent Arjun Ramani said that American firms are increasingly outsourcing their services to Canada, Brazil, and India. 

According to Ramani, the release of new technological innovations made it easy for companies to collaborate with a colleague, a freelance worker, or partner with a service provider despite their locations. 

Meanwhile, XPrize Foundation Founder and Charman Peter Diamandis said that the U.S. is onshoring manufacturing and supply chains for cheaper production while offshoring talent. 

He added that he has seen “lots of incredible AI Talents” in Brazil and Poland over the last few years. 

Diamandis added that geography is now irrelevant in the workplace as he stated, “It’s a matter of are they delivering what they need to do and can I get their services [less than] a third of the prize I would have paid in San Francisco or LA.”

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