The Hindu Business Line : £ 16-b gain from offshoring, says UK trade body chief

ACKNOWLEDGING that UK economy had gained £16 billion (around Rs 1,31,200 crore) through offshoring in 2004, Confederation of British Industry on Monday said it expected outsourcing to increase in the coming years.

"British economy gained £16 billion in 2004 on account of offshoring and more British companies will outsource work to India for skills that are in short supply in UK," Sir Digby Jones, Director-General of Confederation of British Industry, said here.

For cheap manufacturing, British companies would go to China while for high-end manufacturing and services India would be an ideal destination, he added.

"However, India will need to invest in new infrastructure, break down tariff barriers and constantly upgrade skills to retain its edge in offshoring," he pointed out.

He said the British economy was in favour of outsourcing as it frees up people in the UK, who could then concentrate on high-end work. So far 480 Indian companies have invested in the UK and about 350 of them are ICT companies, he said.

He said trade between India and UK was expanding fast and would get a massive thrust with the successful completion of Doha Round of negotiations at World Trade Organisation in December this year.

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