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UK: skills gap fuels offshoring

UK employers are struggling to fill vacancies with skilled British workers and are being forced to look to the EU and beyond, according to a new report. The latest CIPD/KPMG Labour Market Outlook Survey of over 600 employers reveals that 21 per cent of respondents recruited migrant workers in the last quarter; of those workers, 37 per cent came from outside the EU. In the financial sector that figure rose to over 50 per cent.

Meanwhile, ten per cent of private sector employers surveyed plan to offshore work, with 65 per cent of those saying that India was a target location, followed by China (36 per cent) and Eastern Europe (29 per cent).

"The study highlights the complex juggling act the government now faces. The proposed introduction of a migration cap comes at a time when many employers are still struggling to fill skilled vacancies; despite the high unemployment rate," said Gerwyn Davies of the CIPD.

Malcolm Edge, KPMG UK Head of Markets, added: "Our own research shows that UK businesses are increasingly optimistic about their prospects.  In moving forward, businesses need the right people with the right skills.  Increasingly, they are looking overseas to address this skills gap recruiting people to the UK or deciding to offshore both work and jobs.”

Outsource Magazine | Aug 26, 2010

OFFSHORING: outsourcing in 2010 Source: Black book of outsourcing

The 25 Safest Cities for Offshore Outsourcing in 2010
1. Prague, Czech Republic
2. Warsaw, Poland
3. Brno, Czech Republic
4. Krakow, Poland
5. Toronto, Canada
6. Halifax, Canada
7. Singapore, Singapore
8. Dublin, Ireland
9. Kiev, Ukraine
10. Chennai, India
11. Pune, India
12. Wuxi, China
13. Monterrey, Mexico
14. Sao Paolo, Brazil
15. Bangalore, India
16. Beijing, China
17. Santiago, Chile
18. Brasilia, Brazil
19. Mumbai, India
20. Dalian, China
21. Chandigarh, India
22. Rio de Janeiro, Brazil
23. Cebu City, Philippines
24. Kuala Lumpur, Malaysia
25. Kolkata, India

The 25 Riskiest Cities for Offshore Outsourcing in 2010
1. Karachi, Pakistan
2. Medellin, Colombia
3. Juarez, Mexico
4. Cali, Columbia
5. Tijuana, Mexico
6. Lahore, Pakistan
7. Jakarta, Indonesia
8. Lagos, Nigeria
9. Dhaka, Bangladesh
10. Chittagong, Bangladesh
11. Amman, Jordan
12. Khulna, Bangladesh
13. Faisalabad, Pakistan
14. Rawalpindi, Pakistan
15. Port-au-Prince Haiti
16. Managua, Nicaragua
17. Chihuahua, Mexico
18. Ljubljana, Slovenia
19. Tashkent, Uzbekistan
20. Bandung, Indonesia
21. Kingston, Jamaica
22. Tel Aviv, Israel
23. Colombo, Sri Lanka
24. Johannesburg, South Africa
25. Accra, Ghana

"Prague, Czech Republic, Warsaw, Poland, and Brno, Czech Republic ranked as the top three safest cities for outsourcing in 2010, while Singapore fell from the top spot to number seven. Both the Czech Republic and Poland boast skilled IT workforces, centers of excellence set up by major multinational corporations such as Accenture and Cap Gemini, and an influx of Indian vendors selling IT outsourcing and business process services to western Europe. " Stephanie Overby | Jun 11, 2010