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15/10/2003
200,000 jobs threatened by outsourcing to India: Amicus
The insurance and financial services union Amicus has claimed that 200,000 jobs are under threat in the UK as companies prepare to resite call centres to low-cost labour markets.
The claim is contained in a survey, commissioned by the union, by Deloitte Research, which has predicted that two million jobs will be outsourced from western economies to India by 2008 because of labour cost savings of up to 40%. Amicus believes 200,000 UK jobs are at risk in call centres, back office paper processing, IT support and legal.
The union has said that the research that shows a "growing gulf between customers and companies that outsource".
UK customers believe that British companies do a good job and have high levels of training and knowledge and their personal data is safe. Conversely the study has shown that customers believe that Indian companies fail on all three counts, the union claims.
According to the survey, 63% of respondents said that they would take into account whether or not a company outsources when deciding which life products to buy. Up 81% believe cost savings would not be passed on to customers.
Roger Lyons, Amicus Joint General Secretary, said: “Our survey has shown the growing trust deficit between companies that outsource and the people who buy life products. British companies must listen before they do their brands irreparable damage.
“Outsourcing is a fact of global life but it must not be done at the expense of any one national economy over another. The same thing that happened to manufacturing could happen in the service sector unless the Government, employers and unions take immediate action to properly manage technological change.”
(gmcg)
The claim is contained in a survey, commissioned by the union, by Deloitte Research, which has predicted that two million jobs will be outsourced from western economies to India by 2008 because of labour cost savings of up to 40%. Amicus believes 200,000 UK jobs are at risk in call centres, back office paper processing, IT support and legal.
The union has said that the research that shows a "growing gulf between customers and companies that outsource".
UK customers believe that British companies do a good job and have high levels of training and knowledge and their personal data is safe. Conversely the study has shown that customers believe that Indian companies fail on all three counts, the union claims.
According to the survey, 63% of respondents said that they would take into account whether or not a company outsources when deciding which life products to buy. Up 81% believe cost savings would not be passed on to customers.
Roger Lyons, Amicus Joint General Secretary, said: “Our survey has shown the growing trust deficit between companies that outsource and the people who buy life products. British companies must listen before they do their brands irreparable damage.
“Outsourcing is a fact of global life but it must not be done at the expense of any one national economy over another. The same thing that happened to manufacturing could happen in the service sector unless the Government, employers and unions take immediate action to properly manage technological change.”
(gmcg)
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