The popularity of remote work may allow companies from developed countries to hire remote workers from emerging countries and thus reduce labor costs. The total number of teleworking jobs in high-income economies is around 160 million, while the number of potential teleworkers in low- and middle-income economies is around 330 million, according to Coface's estimates.
"For emerging economies, such virtual relocation could become a pillar of development. In order to determine the likely winnings of this trend, Coface developed an index based on four key criteria: human capital, labor cost competitiveness, digital infrastructure, and business climate. Southeast Asia, especially India and Indonesia stand out as a region with high potential. Other large emerging countries such as Brazil and Poland are rated similarly," the release reads.
Virtual offshoring, however, could arouse economic anxiety among workers in mature economies and become a source of political risk.