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The next wave is already upon us, although it still has a very long way to run. White collar work is now well on the way to commoditization. The combination of an aging population, the increased codification of work through the standardization of processes, the increasing sophistication and scope and scale of IT systems and the availability of a cheap and well educated labour force from across the world means that much of the routine work that is now undertaken by well paid staffers will eventually be automated, outsourced, offshored or executed by less expensive personnel. Be warned, this is not just about the simple and routine activities undertaken by administrative personnel. As we will see later, most white collar work is potentially up for grabs, including lawyers, consultants and even surgeons. In fact, any work which does not require high level expertise has the potential to be commoditized.Keywords: Commoditization, Demographic, Economic migration, Offshoring, White collar workplace Why now?First it is important to point out that the commoditization of white collar work is part of the natural progression. As the successive waves have moved up the value chain, it was only a matter of time before white collar work itself could be sufficiently codified to allow it to become commoditized. White collar work is now commoditizable for the following reasons:The impact of technology, especially in terms of the ability to take work out of the system The development and introduction of standards, standard operating procedures and the creation of standardized and hence commoditized processes The changing nature of employment and especially that which has occurred since the downsizing of corporations during the 1990s (more on this shortly)The changing demographic dynamics and the associated imbalances this causes within organizations (at the micro level) and nations (at the macro level).Before moving onto the specific aspects of white collar commoditization and the types of activity that can be considered commoditizable, as well as those which could be considered immune, it is important to explore the changing nature of workthe workplace factors, and the shifting patterns of demographic change -the population factors, in more detail. The workplace factorsAny discussion about the commoditization of white collar work should address the changing nature of work and of the workplace in general because both have made it easier for employers to exploit the benefits associated with labour arbitrage. The workforce factors act as a foundation on which white collar commoditization can thrive because they set the tone, culture and the precedents which permit organizations to push the boundaries and limits of the employment relationship and ultimately the flexibility of its employees. There are four factors worth discussing:The changing nature of work and careersThe end of the psychological contract and the eroding of the 1950's image of a job for life and the gold watch after 30 years of serviceThe intensification of wo...

The issue of commoditization has been receiving more attention in recent times. First the debate is now about how quickly commoditization is sweeping across the corporate world; in sectors and functions which we had previously thought were safe from it. And second, it is the depth and breadth to which commoditization is now penetrating; no longer the preserve of the blue collar worker it is beginning to spread into white collar work that is usually considered immune to the negative impacts of commoditization, particularly as it requires the application of intellect, skill and expertise which unlike blue collar work is generally harder to automate. Like so many processes that play out in the business world, it may have started quite slowly and in quite limited areas, but it is speeding up and extending its reach.

This paper examines why organizations have adopted a wide range of responses when addressing the opportunities and threats posed by commoditization. Some may choose to focus on their cost base, whilst others may focus on innovation. Whatever strategy is adopted, it will be driven by a range of factors including the market or markets in which the organization operates the nature of its competition and how easy it is for them to become commoditized. This paper will present Ryanair, Wal-Mart, Starbucks, Tesco, General Electric and Dell as examples of which highlight how different organizations have approached the challenge of commoditization. What we can conclude from these is that there are many different ways to tackle commoditization and that many organisations do so successfully. For those organizations which are comfortably outside the commoditized zone, it will give them some insights on what to do should the risk of commoditization increase to a point where action is necessary.