Two-third of UK companies prefer India over China for outsourcing
By siliconindia   |   Wednesday, 25 August 2010, 09:26 IST
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LONDON: Who says India will lose its edge in outsourcing? Two-thirds of British companies intending to outsource jobs offshore prefer India over China. A study jointly carried out by the Chartered Institute of Personnel and Development(CIPD) here and the accounting firm KPMG defies the negative image to India's future on outsourcing. The remaining one-third will go to China and eastern Europe. CIPD and KPMG's Labour Market Outlook research claimed a decline in the qualities of those who are emerging out of the British education system, which is driving companies to look overseas. Among the employers surveyed, 42 percent said literacy skills of British graduates had fallen over the past five years, compared with 6 percent who said they had improved. Hence these corporates are seeking to export call centre, IT and finance jobs abroad. A significant number of such employers has told the UK government to rethink about the immigration cap imposed by home minister Theresa May in the present Conservative-Liberal Democrat coalition government, illustrating that one out of 10 jobs in the UK's private sector will be relocated abroad in the next year. This, despite the fact that some of Britain's universities ranked among top five or top 10 in the world. And per capita, the UK still wins the highest number of Nobel prizes in scienc. Many firms are also looking to hire people from outside the UK. Gerwyn Davies, author of the CIPD-KPMG report, said, "The proposed introduction of a migration cap comes at a time when many employers are still struggling to fill skilled vacancies."

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