Feeds

Sending jobs overseas could boost UK economy

Not all bad

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

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

Remote control for virtualized desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?