Feeds

Sending jobs overseas could boost UK economy

Not all bad

  • alert
  • submit to reddit

Security for virtualized datacentres

Punting jobs overseas to countries such as India could "significantly boost" the UK's economic growth, according to a report out today.

The Impact of Global Sourcing on the UK Economy 2003-10, commissioned by the National Association of Software and Service Companies (NASSCOM), an umbrella organisation for IT software and service organisations in India, estimates that by 2010 the UK could face a shortfall of 700,000 jobs as a result of an aging population and slow population growth.

If the problem isn't addressed it reckons that economic growth in the UK could slow, leading to a loss of £113 billion. Outsourcing would not only bridge that gap, it would also help generate extra income.

For the report claims that for every £100 of work outsourced offshore, up to £141 is re-invested directly back into the UK economy.

This upbeat assessment of the benefits of exporting jobs comes even though the report acknowledges that more than 250,000 UK jobs would be lost as a result of offshoring

But it argues that while the impact of offshoring on the UK workforce is "real" and "will lead to the displacement of workers", it insists that the UK labour market is flexible enough to deal with the problem.

Sunil Mehta, NASSCOM VP, said: "Technology allows companies to work with suppliers from all parts of the globe in way that was not possible in the past.

"Many companies from the UK and elsewhere are increasingly working with the Indian software and services industry to improve their performance in the global economy.

"This report demonstrates clearly that global sourcing offers major benefits to the UK
economy opens up new business opportunities."

Of course, there are those who disagree and, in particular, the protection of UK jobs has become an issue picked up by unions keen to look after the interests of their members.

For instance, the Communications Workers Union (CWU) continues to campaign against BT's plan to create 2,200 call centre jobs in India. While finance union, Unifi, is campaigning to stop HSBC, Lloyds TSB, and other finance companies sending work abroad.

According to research compiled by the CWU, some 50,000 jobs have been lost overseas by a number of companies including Abbey, Barclays, BT and HSBC, among others. ®

Related Stories

In praise of outsourcing
CWU steps up action over BT jobs-to-India

Classic t-shirt from CashnCarrion

My job went to India and all I got was this lousy t-shirt
And here's how we make'em

Providing a secure and efficient Helpdesk

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.