ID :
12101
Thu, 07/10/2008 - 20:25
Auther :
Shortlink :
https://oananews.org//node/12101
The shortlink copeid
Outsourcing work to India creates jobs in UK: economists
London, July 10 (PTI) Outsourcing work by British companies to India does not cause job losses but boosts employment, according to a research by economists at theUniversity of Nottingham.
Scores of major UK companies have been involved inoff-shoring, which has often been opposed by unions.
But the research by the Globalisation and Economic Policy centre (G.E.P.) at the University of Nottingham says the efficiencies it has brought has actually boosted businessand led to them employing more people in the UK, not less.
David Greenaway, Director of the centre, said: "People fear their jobs are being exported to countries like India and China where labour is cheaper, but the picture is far morecomplex than that and much more positive.
"It would seem that firms that off-shore part of their production process or service provision overseas become more efficient. This boosts productivity and turnover and as a result these firms grow and end up employing more people at home, not fewer." The G.E.P. research says there are losers when off- shoring takes place through higher job turnover and people are unable to adapt to new skills. Richard Kneller, who co-wrote the research, says it also explodes another myth aboutoff-shoring.
He said: "The common perception of off-shoring is that it's largely low-paid call centre jobs being exported to lowerwage economies like China and India, but that's not the case.
"If you think of manufacturing and the production of parts, then it is skilled work. If you look at car manufacturing, Ford may make engines at Dagenham but gear boxes in Spain; if you think of Airbus - Britain makes thewings and engines, France the bodies", Kneller said.
Britain is also a major beneficiary of off-shoring, he said. "In the services sector, Britain has a reputation for areas like finance and creative media and overseas firms will outsource work in this area to UK firms."
Scores of major UK companies have been involved inoff-shoring, which has often been opposed by unions.
But the research by the Globalisation and Economic Policy centre (G.E.P.) at the University of Nottingham says the efficiencies it has brought has actually boosted businessand led to them employing more people in the UK, not less.
David Greenaway, Director of the centre, said: "People fear their jobs are being exported to countries like India and China where labour is cheaper, but the picture is far morecomplex than that and much more positive.
"It would seem that firms that off-shore part of their production process or service provision overseas become more efficient. This boosts productivity and turnover and as a result these firms grow and end up employing more people at home, not fewer." The G.E.P. research says there are losers when off- shoring takes place through higher job turnover and people are unable to adapt to new skills. Richard Kneller, who co-wrote the research, says it also explodes another myth aboutoff-shoring.
He said: "The common perception of off-shoring is that it's largely low-paid call centre jobs being exported to lowerwage economies like China and India, but that's not the case.
"If you think of manufacturing and the production of parts, then it is skilled work. If you look at car manufacturing, Ford may make engines at Dagenham but gear boxes in Spain; if you think of Airbus - Britain makes thewings and engines, France the bodies", Kneller said.
Britain is also a major beneficiary of off-shoring, he said. "In the services sector, Britain has a reputation for areas like finance and creative media and overseas firms will outsource work in this area to UK firms."
