A search for workers with scientific and technical background is becoming a significant factor driving companies in the United States and European Union to move operations offshore, according to a study released Tuesday.
About 70 percent of companies who opted to move operations abroad did so in search of "access to qualified personnel," the study by Duke University and consulting firm Booz Allen found.
"Companies in the advanced economies of the United States and Europe cannot find domestically the high-skilled talent they need," said Arie Lewin, the Duke professor who ran the study, which surveyed 530 companies in the U.S. and Europe.
"They are reacting to the steady decline in the supply of graduates with advanced degrees in engineering and science," Lewin said.
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However moving positions overseas poses companies one major worry - 48 percent of respondents said they feared they would lose "managerial control" of overseas employees.
The study found that India was the top offshoring destination for U.S. companies, with China growing in importance.
Copyright Reuters 2006.
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