The latest Labour Market Outlook survey by the Chartered Institute of Personnel and Development (CIPD) has revealed that firms are increasingly looking to outsource jobs overseas, thus affecting those in the UK looking for permanent and contract work.
10% of all companies surveyed are looking to outsource their workload to different countries. Notably, 41% of firms within the IT sector plan to outsource work to India and Eastern Europe.
Gerwyn Davies, CIPD public policy adviser and author of the report, said
“Despite rising unemployment, employers are still struggling to recruit the people they need and we are turning abroad to plug the gap. To help minimise further outsourcing of jobs abroad, the government needs to do all it can to curb rising wage costs. A good start would be abandoning the national insurance contribution increase, planned for 2011.”
Firms that currently have a recruitment freeze and are reluctant to employ any permanent staff would be advised to hire contractors and freelancers in the UK to ‘plug the gap’. Many companies already prefer to hire contractors to undertake specialist projects because they offer expertise that’s not available in-house, and with less strings attached they often offer better value and less risk in the long-term.
There are over 1.4 million freelancers, contractors and consultants within the UK and rather than outsourcing jobs abroad, firms should be looking at this marketplace first as there is a wealth of talent and expertise right on their doorstep.
The PCG, the professional association that supports freelancers, contractors and consultants have launched a website http://www.britainsbraingain.com/ which tells firms considering using freelancers, contractors and consultants; how they are able to respond quickly to the evolving needs of a business, and help it to grow in these ‘challenging times’.
Independent Contractor Services (ICS) offers accountancy and administration services tailored to suit those working within the contractor marketplace. You can find out more about our Umbrella Service, Limited Company Service and Sole Trader Service by visiting www.ics.me.uk.
Even though Outsourcing is a profitable business, I hope companies can ensure their people that they will not lose their jobs. Outsourcing can be tricky at times.
I agree. As much as companies would like to cut costs, they should take into consideration the welfare of their employees – more so in difficult economic times.