Offshore outsourcing is an option companies can't afford to ignore

Is the growth of offshore providers a threat or an inevitability?

Written by Bryan Glick

Offshore outsourcing is the scare story that just won't go away.

Last week, Thames Water and Reuters became the latest major companies to announce plans to move part of their operations to India. Online travel provider eBookers also said it plans to expand its existing Indian operation. What was once a trickle could become a torrent of Ganges proportions.

But this is not a story about 'UK jobs being transferred overseas shock horror isn't it awful.' There are too many Little Englanders who see the offshore trend as some sort of fundamental threat to UK workers. It is always a sad time for anyone who loses their job, but the unfortunate reality is that either those jobs will go because your company has outsourced overseas, or because your competitor has done so and can provide the same service at a lower price. Sad, but increasingly unavoidable. We live in a global economy, and if UK companies do not make decisions on a global basis, their long-term competitiveness is at stake.

Twenty years ago, the scaremongers warned that the growth in computer use would lay waste to administrative jobs and cause mass redundancies. Where are those workers now? Using new skills in a different environment and probably quite glad not to be filing clerks anymore.

Analyst Gartner says that among European countries, the UK will feel the greatest impact from offshore job losses, but predicts that the lead UK companies are taking will prove to be an advantage. Ultimately, our economy will benefit, and more jobs will be created.

Before the debate tips into borderline racism among some of the more fervent anti-offshore campaigners, UK employers need to take a mature approach to the issue. IT staff are justifiably worried, and their concerns need to be taken seriously. A positive programme of training, development and communications is needed to make sure those most affected understand the implications - and the opportunities they have to learn new skills.

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