Paul Martin's Business Update - March 11th, 2014

Mar 11, 2014, 08:30 PM

Paul Martin's Business Update - March 11th, 2014

Business and political blogs have long been filled with complaints about the concept of off-shoring – where jobs are shipped overseas in search of cheaper labor – or out-sourcing where organizations contract out certain functions.

But the headlines may have been louder than the story.

An examination of the practise conducted by StatsCan shows that off-shoring is not much of an issue in this country and out-sourcing – contracting jobs to others in the local market rather than going overseas – is far more popular with small outfits than big ones.

The agency broke the market into three categories: those with fewer than 100 employees, those with more than 250 and the group in between. Only 13 per cent of production work or factory-type jobs were done outside the country. The figures were even lower when looking at technical or support functions.

The most likely role to be out-sourced was legal advice. Very few organizations can support in-house lawyers so they contract it out. But when it comes to the broader range of activities it was really only the big employers looked outside country as the mid-sized ones actually brought more back in house.

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