Startup Beat

Since the financial crisis of 2008, the United States had offshored over 2.4 million jobs. It has become a usual and popular business practice, demonstrated by some 300,000 positions moved abroad annually even now.

Companies have many reasons to follow this trend: It lets them decentralize their operations and focus on their core business fully. Most importantly, it is perceived as a fundamental cost-cutting tool; 57% of companies see the cost efficiency as the main reason for offshoring. Sometimes this manifests through better financial conditions in the target destinations, such as tax benefits or financial incentives. But in most of the cases, it is driven by the desire to employ cheap, foreign labor.

How does this predisposition form the employer-employee dynamics? Companies that adopt a “profit-first” lense sacrifice important milestones of the employment relationship. Promoting company values and loyalty is side-lined and foreign workers become more likely to suffer from

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