Feeds

Sending jobs overseas could boost UK economy

Not all bad

  • alert
  • submit to reddit

3 Big data security analytics techniques

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

SANS - Survey on application security programs

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.