By Steve Ranger, 29 March 2005 16:25
NEWS Higher-paid City jobs will follow call centre and back office admin roles offshore over the next five years, warns financial consultancy Troika.
The consultancyÂ’s research suggests that as many as 15,000 higher-paid jobs will go to offshore locations such as India over the next five years.
It calculates that 100,000 financial services jobs will move abroad in total over the same period.
Troika’s managing director Andrew Stewart said: “We saw last year that companies – particularly in the financial services sector – are comfortable with outsourcing some aspects of their business. The disaggregation of value chain and outsourcing components is now widely accepted as a business strategy.”
While until now the majority of offshoring has been back office functions and call centres, now more complex and higher-paid jobs - such as finance, research, human resources and marketing - are starting to move offshore as well, Stewart said.
And he said that offshoring models now under discussion involve keeping the call centre in UK to ensure customers are happy, while offshoring expensive back office functions that do not need to be performed in UK, such as finance and human resources.
Comments
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1. anonymous
Ah, the higher paid, more skilled jobs now going to India, bringing the lower paid, more menial call centre stuff back to the UK.
A good move? I dont know. If the higher paid jobs are going, then people might just sit up and listen. Can you see a Human Resources Director taking a call centre job on minimum wage, because that is all that is available.
Perhaps if they outsourced the Accountants who see the bottom line who influence the decision to outsource in the first place, it would stop this UK jobs drain.
2. anonymous
I find it interesting that a number of my colleagues come from the countries that offer the outsourcing services. Perhaps it is time to become more protective of our own jobs! Fair enough having a world economy but not at the expense of indigenous work force. At the end of the day the burden of unemployment falls on all of the country's working population. Is it not time to consider the social cost of this constant drive to cut costs in firms by heaping the results on an ever more disatisfied nation?
3. anonymous
Whether UK or US, I recall when we were all told that only the lower-paid jobs were going to be out-sourced. I knew then that this would change. And it has.
I too am concerned about the "social" cost of all this globalization and out-sourcing. ---The US used to be a country "of, by, and for the people", but is now of, by, and for the Corporations. The UK seems to be in the same boat. When the corporations that are gutting the US and UK of jobs other than burger-flipping, low-pay, find that their source of wealth (well-paid workers) is depleted and they're financially affected, then, and only then, will they take notice. In the meantime, the social cost to the average person is going to be high.
The industrial base has always been considered the source of wealth of any nation. Ours' (US & UK) is being pilaged. How many of you are prepared to learn Chinese, as they appear to be the up and coming industrial nation of the world.