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Almost half of IT companies plan to relocate jobs abroad, making the technology industry the UK’s likeliest private sector employer to build-out operations offshore. In a survey of more than 700 employers, India emerged as the preferred overseas destination for the 10 per cent of respondents looking to export jobs from the UK. Out of those UK employers with offshore intentions, less than a fifth were manufacturers, while almost half (44 per cent) were in the Computing and IT sector. The Chartered Institute of Personnel and Development, co-authors of the survey, said such jobs outsourcing represented “a medium-term concern” for the UK economy. Whether they are eyeing India, or Eastern Europe - the other hotspot, the companies hope to find the right balance between skills, quality and cost reduction, CIPD said. Almost regardless of their motivations, the chief executives of UK IT companies planning to outsource jobs will be reassured that India is sizing up their needs. At India’s principal IT conference last week, the nation’s industry body Nasscom predicted that 150,000 IT jobs would be created this year. India’s retail, healthcare and utility sectors are growing three times faster than the core markets, the group said, indicating they will create IT jobs the quickest. But according to Jim Champy, chairman of Dell Services’ consulting arm, the money spent on IT outsourcing by Asian companies is set to grow faster than in Western companies. In other words, the trend of more companies in Europe and the US buying computer services than those in India is set to reverse this year, Mr Champy told the Financial Times. Seeming to confirm his outlook, western IT firms are already scrambling to “get a slice of the Asian action,” say analysts at TechMarketView. Evidencing their claim, they pointed out that Steria, a UK IT services firm, has started using its India offshore services unit, thanks to acquiring Xansa, to sell into India’s domestic market. The analysts say they are “absolutely convinced that other [Western] players will follow suit,” in order to tap into Asia’s growing appetite for IT outsourcing. According to Nasscom, Asia will account for more than a quarter of global consumption of IT and business process outsourcing services in the next decade, up from nearly 20 per cent today. Feb 16, 2010 Email this article Printer friendly page Previous Page
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