For the first time in many years, US companies clearly face a real change in sentiment and political risk in sending or keeping work offshore. It’s clear that the new Trump administration combined with other secular forces (Brexit and the U.S. presidential campaign rhetoric, for example) signals a step back and pause in globalization. I think it’s reasonable to believe that, to a larger extent than before, all directors in companies will be pressured to not use labor arbitrage and potentially pressured to repatriate work that has already been moved offshore. The problem this poses for companies is that executives have a fiduciary responsibility to their company.
So far, president-elect Trump has gone after high-profile consumer goods companies and manufacturing companies. It is clear that Trump is tough on services, so it’s likely that this pressure will show up soon in the services space. What can companies do when they come under this pressure?