Outsourcing threatening economy of UK: survey

New Delhi, Nov 29 | Updated: Nov 30 2006, 07:51am hrs
The opposition to outsourcing of jobs to low-cost locations is intensifying further in the UK with a large majority of Britons saying no more jobs should be moved abroad, while China and India have been termed as the biggest threats to the British economy.

As many has 82% of the people said in a survey conducted by consultancy firms Deloitte and YouGov that enough jobs have gone abroad, while one-third of the respondents said the UK companies should be forced to bring jobs back into the country. The survey results come amid continuing trend of job movements to countries like India and South Africa, where labour costs are cheaper.

When asked which countries posed the biggest challenges to the UK economy over the next five years, the emerging economies of China (76%) and India (48%) came out on the top, followed by the US (34%) and Japan (32%).

David Owen, consulting partner at Deloitte, said, the speed and energy with which India and China are increasingly competing on equal footing has been a key subject of debate recently and the fact is that these economies have the potential to create major openings for UK companies. As the worlds leading recipient of inward foreign direct investment, the UK is experiencing a huge in-flow of companies from India and China, with a surge of listings over the past three years on both LSE and AIM, he added. Just 4% of the respondents supported continuation of offshoring. The latest survey results are a sharp contrast to a study conducted in January 2006.

PTI