Bill (not his real name) has spent the last four years worrying on his way to work that it could be his last day at Nortel Networks.
After creating numerous lists for high-level Nortel executives to choose layoff candidates, his business unit went from dozens of people to a handful of survivors who anxiously stared at the door whenever they heard footsteps in the hall.
As the downturn showed signs of ending, the siege mentality in the unit finally began to abate.
With the end in sight and the staff finally beginning to relax, they began to hear rumours last week that their jobs were slated for outsourcing to Asia.
It's a scenario that has played out for many technology workers as enterprises looked to technology savvy, English-speaking workers in the developing world to fill its needs with cheap labour.
While Canadian workers sometimes end up at the losing end of the outsourcing equation, a study by University of British Colombia professor Penny Gurstein promises to give them the tools to attract jobs rather than watch them migrate offshore.
"We are trying to look at outsourcing in a more systematic way than just looking at particular companies that are doing this. There might be a possibility for Canada to attract more work like this by making it a destination," Ms Gurstein said.
"The research we are doing is all about telemediated outsourcing, so we are looking at the impact of outsourcing that uses information and communication technologies (ICT). The case studies surround remote work such as software development, contact centres, business functions and data processing."
The idea is to determine the key technologies for outsourcing, how they're being used, and the skill sets desired by companies looking to outsource. Using the results, companies can set up in a way that attracts contracts from other regions of Canada and abroad.
A Meta Group study found that seven in 10 firms use outsourcing and predicting that almost all firms should be seeking outside help for services by next year. The numbers point to an opportunity to retain jobs and possibly attract contracts to Canada.
Ms Gurstein insisted the rewards promise to be lucrative, pointing to a 2004 report by Gartner Group that estimated the global market for outsourcing of business processes hovers around about US$5 trillion and grows at about 15 per cent annually.
So far, the UBC study has identified six levels of e-work destinations, which rank from the winners at the top, which she calls "e-leaders" to the self-explanatory "e-losers." On the outsourcing attractiveness scale, Canada ranked as an "e-maybe," which is one step away from the loser category.
But, Ms Gurstein insisted that's not as bad as it sounds.
"It suggests that in terms of the global economy Canada is neither a winner, nor a loser in the acquisition of e-work – compared to other countries, Canada is relatively small player in the digital economy given the low volumes of eWork outsourced by or to local firms," she said.
"This analysis also suggests that Canada might also play a dual role in the digital economy as both as a source and destination for outsourced work."
The study found that trade in these business services saw an inflow to Canada of $14.2 billion and a corresponding outflow of $13.4 billion in 1999.
An e-maybe is a country with a small population, well-developed infrastructure and human resources, as well as a reputation for trustworthiness, but often without the spare capacity to take on relocated employment.
While low-cost English language skills often make countries such as India attractive to companies looking to outsource, the equation also limits the contracts to a narrower band of specific requirements.
In today's global economy outsourcing decisions aren't always based on simple cost savings, said Chris Ellsay, founder and president of Workshift.com.
Mr. Ellsay insisted his clients are looking for excellence in service with price being a secondary concern.
"Canadian companies can be very successful with the excellent education and genuine customer service staff available. Canadian service is excellent and we need to promote this globally," he said.
"Workshift has been doing a great outsourcing business in Canada and we have seen very little movement to outside the country in our client base. I know of companies that have outsourced overseas and are now bringing the work back to Canada."
Ottawa's high tech community in particular may have some distinct advantages over competitors because of its rich cultural make-up, which includes a number of different language skills and cultures.
"The kind of skilled workforce that's available has become more important in many cases," Ms Gurstein added.
"Because we have a large immigrant population, companies are very interested in the fact that there is a multilingual workforce which is extremely desirable."
The study has also received international attention and offers from universities in the U.S., Columbia, and South Africa, which would like to extend the survey into these regions. It also has the support of the Canadian Advanced Technology Association.
While it focuses on technology workers and the impact of outsourcing on the high-tech community, the study received funding from the Social Sciences and Humanities Research Council.
It was funded under a special program called the Initiative on the New Economy begun under outgoing council president Marc Renaud.
The results of Ms Gursteins research will be unveiled during a small invitation-only conference in Toronto in April.
The event will bring government, industry, labour and academic representatives together to develop an action plan to help companies identify and exploit their advantages. A second international conference is slated for 2006.
By Jeff Pappone
Special to the Ottawa Business Journal
FACT BOX:
Canada's eWinners: Alberta, Ontario, Quebec, and to a slightly lesser extent B.C. continue to capture a larger share of the domestic and international market in outsourcing services.
Canada's eHares: Manitoba, New Brunswick and to a lesser degree Newfoundland and Prince Edward Island are making gains through natural competitive advantage or through government initiative.
Canada's eLosers: Nova Scotia and Saskatchewan seem to be decreasing their shares of both the global and domestic eWork market.
