Forrester predicts strongest jobs losses in UK

750,000 jobs could be shifted from UK to offshore destinations. As European firms — especially in the UK — ramp up their spending with offshore service providers in countries like India, they will increasingly displace substantial numbers of employees from their current roles. Europe will lose a cumulative 1.2 million jobs to offshore locations by 2015 — with the lion's share of the impact falling in the UK. Financial firms will move most aggressively offshore. Computing and clerical staff will suffer most. Protectionist measures will fail, as inventive companies use stealth tactics to avoid the barriers put in their way. Despite the pain involved in job losses in Europe, the European countries that use offshore services least — such as France and Germany — will likely lose as a result, as aggressive offshore user countries like the UK get an economic boost from offshore efficiencies.

A report, published by Forrester, predicts a lead for UK to offshore till 2015 150,000 IT jobs and an other 100,000 clerical jobs with IT enabled services. Adding an other 510,000 jobs in other sectors, this would even sum up to 3% of UK's workforce or 760,000 jobs!

But Forrester predicts a very strong cost advantage and points out the lead of UK compared to countries like Germany, France and Italy, which will shift 140,000 jobs till 2015 each.

Germany and France are expected to accelerate their take-up of offshore outsourcing by 2007, but will be too late to benefit from the lowest prices and the best expertise. They will need to look to China for competitive advantages.

There are likely to be acquisitions within the IT services market as the economy in Europe falters and Indian suppliers become more dominant, Forrester predicts.

More info at Forrester!