Adecco, the worldís HR Services company, in collaboration with London Business School, today brought together global commentators on offshoring and outsourcing to discuss the changing trends in the overseas labour markets.
Hosted at the London Business School, the seminar focused on the drivers behind outsourcing and the impact such trends will have on western economies as more jobs move overseas.
The seminar, presented by Saul Estrin, Adecco Professor of Business and Society, included expert panellists M. K. Shankaralinge Gowda (Government of Karnataka, Southern India); Professor Richard Scase (author, academic and entrepreneur); Andrew Kris (Chairman of the Advisory Board Shared Services and BPO Association); David Flemming (Amicus); Ajit Isaac (founder of Peopleone and Human Resources Professional) Tunde Johnson (Group Chief Compliance Business and Ethics Officer, Adecco) and Jrme Caille (CEO Adecco).
Jrme Caille, CEO of Adecco SA comments, The London Business School seminar has been an excellent forum for the issues surrounding outsourcing to be discussed, dispelling some of the myths. The market is constantly changing as the economies of different countries develop. This progression will mean new challenges, but also new opportunities for businesses. With so many variables, companies need to be sure they are making the right decision to outsource or move offshore, but they also have to ensure they locate to a country suitable to their needs.
The seminar highlights the growing maturity of the offshoring and outsourcing market. Countries such as India, the Philippines and those in Eastern Europe are becoming ídeveloped marketsí and with this comes the issues associated with such industrial growth. In addition, new low cost markets, such as China and Russia are opening up, providing businesses with further options, but also greater considerations regarding training and cultural differences.
Saul Estrin, Adecco Professor of Business and Society at London Business School stressed the impact offshoring had on both source and host economies. He noted, Offshoring used to be concentrated in manufacturing, and largely entailed the shifting of less skilled aspects of the production chain to developing economies. However, in recent years, it has increasingly spread to the service sector and affected highly skilled jobs, for example in the software and business services industries. He continues, There is increasing evidence that offshoring is associated with higher productivity and efficiency for the rising number of firms that undertake it, and enhance competitiveness for firms and economies that use it.
Professor Estrin also discussed the issue of unemployment as jobs shifted abroad. He argued, In fact, the number of jobs affected is small, relative to the normal annual rates of job turnover and might easily be offset by job creation. Moreover, since offshoring is associated with higher productivity, this means wages will rise for those employed in offshoring sectors.
For further information please contact:
Jon Lonsdale /Joanna Masson
Adecco Press Office
Octopus Communications
Tel: 01753 672 755 / Email: adecco@octopuscomms.net
Adecco leads the debate on the economics of offshoring with the London Business School
New entrants and maturing economies increase the challenges facing businesses considering offshoring
