Outsourcing of high-skill jobs to India on rise, says ILO report
EXPRESS NEWS SERVICE
NEW DELHI : India and China, known for their low labour cost advantage,
are increasingly landing jobs outsourced from the West that are skilled
and high-paying due to the increasing educational and skill levels in
these countries, says the International Labour Organisation’s World
Employment Report 2004-05.
The report states, ‘‘Whereas the outsourcing of lower-skilled, less-paid
jobs is not a new phenomenon, increasing educational and skill levels in
developing countries enjoying labour cost advantages, India and China
predominant among them, may be attracting jobs once thought relatively
immune to relocation.’’
The report also says that while such a ‘‘qualitative’’ change in the
‘‘international division of labour has a certain logical appeal’’, the
data on the matter seems to be incomplete. It states that there could be
other benefits of outsourcing besides reduced costs, like new markets for
the home-country goods and services.
‘‘According to one study, for every dollar spent on outsourcing, the US
domestic economy gains $1.12-1.14, while the foreign host country receives
$0.33.’’ The report says that as a policy, there should be renovation of
labour market institutions so that they are equipped to keep pace with the
rate of loss of high-paying jobs in the world. ‘‘This underscores the need
for a focus on ‘supply-side preparedness’, with a particular emphasis on
providing access to skills relevant to the future demand for labour.’’
It emphasises that ‘‘where the people really work is as important as a
focus on emerging, dynamic sectors’’.
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