EMERGENCE

Riga, April 4, 2002

eWork in a Global Economy: Some Results from the EMERGENCE Project

Ursula HuwsInstitute for Employment Studies

TELEBALT WORKSHOP

EMERGENCE

A new spatial division of labour in knowledge work

The combination of telecommunications and computing (telematics) is bringing about major changes in who does what work, where, when and how

There are new choices open to both employers and workers in the organisation of work in time and space

EMERGENCE

EMERGENCE

Estimation andMapping ofEmploymentRelocation in aGlobalEconomy in theNewCommunicationsEnvironment

EMERGENCE

The EMERGENCE Project

AIMS Measure the extent of eWork Identify forms and characteristics of eWork Identify favoured locations for each eActivity Find reasons for choice of location or supplier Explore dynamics of relocation Investigate employment implications Identify constraints and facilitators Identify indicators for future modelling and

tracking Inform regional development strategies

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Individualised forms of eWork

fully home-based eWorkers

multilocational eWorkers

elancerse-enabled self-

employed

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Employers’ use of telehomeworking, by country

0% 2% 4% 6% 8% 10% 12%

Austria

Belgium

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Luxembourg

Netherlands

Poland

Portugal

Spain

Sweden

UK

All

EMERGENCE

Projected growth oftelehomeworking in Europe to 2010

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Employment expansion onlyOrganisational change onlyOrganisational change and employment expansion

EMERGENCE

Employers’ use of multilocational eWorkers, by country

0% 5% 10% 15% 20% 25% 30% 35%

Austria

Belgium

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Luxembourg

Netherlands

Poland

Portugal

Spain

Sweden

UK

All

EMERGENCE

Projected growth of multilocational eWorkers in Europe to 2010

0

2

4

6

8

10

12

14

16

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

mill

ion

s

Employment expansion only

Organisational change only

Organisational change and employment expansion

EMERGENCE

Employers’ use of eLancers, by country

0% 5% 10% 15% 20% 25%

Austria

Belgium

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Luxembourg

Netherlands

Poland

Portugal

Spain

Sweden

UK

All

EMERGENCE

Projected growth in eLancing in the EU, to 2010

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

mill

ions

Employment growth

ICT diffusion

Employment growth and ICT diffusion

EMERGENCE

eEnabled self employment: projected growth to 2010 based on continuation of existing trends

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

milli

ons

ICT diffusion

EMERGENCE

Estimates of telehomeworkers, eEnabled workers and eEnhanced workers in Europe, 2000

EU 15

1. Home-based employees who use a computer and telecommunications link toconduct their work. (person equivalent)

810,000

2. Multilocational employees who use a computer and telecommunications link toconduct their work. (person equivalent)

3,700,000

3. eLancers providing business and related industries who use a computer andtelecommunications link to conduct their work

1,450,000

Number of person equivalent eWorkers – sum of 1-3 above (EMERGENCEnarrow definition)

5,960,000

4. Number of eEnabled self employed workers who require a computer andtelecommunications link to conduct their work not working in business relatedindustries.

3,080,000

Number of person equivalent eWorkers – sum of 1-4 above (EMERGENCEbroad definition).

9,040,000

Estimated number of eWorkers based on CLFS and UK LFS (includingirregular eWorkers)

9,830,000

(ECATT estimate of ‘regular’ plus ‘supplementary’ teleworkers in Europe in 19991) 9,009,000

1 ECATT Project, Telework Data Report, Bonn, 2000

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Projections of telehomeworkers, multilocational eWorkers and eLancers, 2010

EmploymentGrowth

ICTdiffusion

Employmentgrowth & ICT

diffusion

Telehomeworkingemployees

950,000 2,750,000 3,170,000

Multilocational eWorkers(person equivalent)

4,309,788 12,462,907 14,332,343

eLancers (providing businessrelated services)

1,790,000 2,490,000 3,040,000

eEnabled self-employed 3,080,000 6,580,000 6,580,000

Total estimate ofindividualised eWorking

10,129,788 24,282,907 27,122,343

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Office-based forms of eWork

remote back offices (employees)

eOutsourcingtelecentres or

telecottages

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E-work in Europe (demand side)by type of e-work

(% of establishments with >50 employees)

13.8

16.6

40.5

11.3

42.9

1

6.6

9.8

1.7

11.7

48.4

61.6

0 10 20 30 40 50 60 70

e-linked call centre

any remote call centre

business services companies

'e- lancers'

any e-outsource

third party telecentre

remote back office

multi- location employees

home-based employees

any e-employees

any e-work

any e-work including mobile sales

Source: EMERGENCE employer survey, 2000

EMERGENCE

Use of outsourced business services (% of establishments with >50 employees)

5.4

19.2

34.1

11.1

42.9

6

24.7

44.8

15.2

55.8

0 10 20 30 40 50 60

other country o/ s

other region o/ s

same town/ region o/ s

outsourced call centre

any outsourcing

with e-link any

Source: EMERGENCE employer survey, 2000

EMERGENCE

eWork demand by business function (% of establishments with >50 employees)

9.2

2.8

3.3

29.4

4.4

18.6

9.1

48.4

0 10 20 30 40 50 60

customer service

telesales

financial

software/ IT support

data processing

design/ creative

HR/ training

any eWork

Source: EMERGENCE employer survey, 2000

EMERGENCE

eWork supply in Europe by country (% of establishments with >50 employees)

19 1823

16

2217

28

107

30

12 1014

27

58

1116 17

21

0

10

20

30

40

50

60

70

Source: EMERGENCE employer survey, 2000

EMERGENCE

eWork supply by business function(% of establishments with >50 employees)

10.5

2.9

3.1

5.4

3.7

6.9

4

20.5

0 5 10 15 20 25

customer service

telesales

financial

software/ IT support

data processing

design/ creative

HR/ training

any eWork supplied

Source: EMERGENCE employer survey, 2000

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Reasons for choice of eOutsourcer (reasons for choice of location, % of all outsourced services)

5.4

2.8

12.4

1.2

12

9.1

2.6

21.8

12

2

0 5 10 15 20 25

near other parts of the company

near customers

good reputation

language/culture

low cost/competitive tender

existing relationship/alliance

personal link

technical expertise

reliability

they targeted us

Source: EMERGENCE employer survey, 2000

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Typology of eWork Relocation

Company re-organisation Isolated measure Background/ cause:

Primary objective:Concentration(Reduction)

Decentralisation(Expansion)

Complementing(Expansion)

Replacement(Reduction)

Geographicalrelocation

I III V VII

Outsourcing II IV VI VIII

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Relocation of customer services call centres

Motives availability of workers, costs, corporate restructuring

Metropolitan versus rural areas Importance of information and

communication technology

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Relocation of software-development and IT support

Motives and aims of relocationRecruitment problems - labour market

oriented relocationSkill oriented relocationsCost oriented relocationsCentralisation; economies of scale

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Organisational and technical challenges

Facilitators

Technical Infrastructure and ICT utilisation Contacts in destination location and support

by parent company High degree of division of labour

standardisation and formalisation Involvement of employees Organisational change and transfer of

knowledge

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Outsourcing over the Internet

(Intermed Case Study)

“I have never heard Kirill‘s voice” “I have never heard Kirill‘s voice”

EMERGENCE

Software-Development in Poland

(Betty Case Study)

“Without personal contacts one

wouldn‘t do that”

“Without personal contacts one

wouldn‘t do that”

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Tele-Cooperation

(Brandfree Case Study)

“Once they saw that I didn‘t have two

heads things instantly improved“

“Once they saw that I didn‘t have two

heads things instantly improved“

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Employment effects

Positive employment effects in ‘expansion’ and ‘complementing’ type relocations

Loss of jobs in ‘concentration’ and ‘replacement’ type relocations

Qualitative employment effectsHigh demands on mobility of employeesHow long is the butterfly going to stay?

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implications for the Baltic region

Opportunities to develop individualised forms of eWork

Major opportunities to supply eServices to the EU and other developed countries

BUT Need to compete with the rest of the world Necessity for

Infrastructure Skills, including language skills Effective marketing Understanding of EU business cultures

EMERGENCE

For more information go to

www.emergence.nu

www.analytica.org.uk

www.employment-studies.co.uk