Remote Work: The Risks and Opportunities of Virtual Offshoring

from the crisis, this cultural shift could allow companies located in developed countries to hire teleworking talent in emerging countries to reduce their labour costs. Coface estimates that the total number of teleworkable jobs in high-income economies is about 160 million, while the number of potential teleworkers in low- and middle-income economies is about 330 million. Coface also estimates that French compaines would save 7% on labor costs even if only 1 in 4 teleworkable jobs were offshored.

For emerging economies, this potential virtual relocation could become a pillar of development. To identify the likely winners of this trend, Coface built an indicator based on four key criteria: human capital, labour cost competitiveness, digital infrastructure and business climate. Southeast Asia stands out as a region with high potential, notably India and Indonesia; as do other large emerging countries like Brazil and Poland.

Yet, virtual offshoring could create economic anxiety among workers in mature economies and become a source of political risk