IT jobs most suitable for offshoring – new Roland Berger study

by Editor 5/6/2009 3:34:00 PM
management consulting jobs
A third of UK jobs at risk of being sent overseas, according to a new report from strategy consulting firm Roland Berger.

Roland Berger consultants polled senior executives at 200 multinational firms based in the UK and the responses show that operating costs in the UK will prompt companies to move core functions abroad. Around 29 percent of the workforce in the companies included in the survey could be replaced by lower-cost labour by 2015. More than 50 percent of the executives polled have either begun the process or are considering to do so.

Information technology was cited by most as the most suitable function to offshore, with 69 percent of the executives saying that they are considering the move. Other than IT, jobs most likely to be offshored are in customer services (64 percent), research and development (61 percent) and sales management (59 percent).

As many as 81 percent of the executives surveyed said they planned to offshore key business areas within the next six years.

David Stern, UK managing partner at Roland Berger Strategy Consultants, says: “This trend towards offshoring is markedly different from the international outsourcing we have seen to date, with both knowledge economy jobs and core business functions now being exported to economies which are more competitive in the global environment. These are unlikely to return once the economy picks up, a trend which threatens a permanent rise in UK unemployment, leading to falling revenues and ultimately a decline in GDP.”

“The government must help UK companies and employees become more competitive in the global market place, otherwise the trickle of jobs moving offshore will become a torrent,” he added. “This will require reducing bureaucracy, enhancing the skills of the labour pool and alleviating the cost burden on business, but this will present a huge challenge in the current economic climate.”

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