We live in a time dictated by increased competition, globalisation, and a seemingly perpetually sluggish domestic economy. While many of the effects can be felt financially, another ancillary and yet profound result is that we have witnessed a large number of jobs moving overseas. So, why are jobs moving overseas? Let us examine a few key factors that have led to this exodus.
Lower Cost of Living
One of the major reasons that companies are seeking life outside of the United Kingdom is that many countries abroad offer lower costs of living to employees. Thus, the company can actually save money in the long-term by moving offshore as their drive to cut costs intensifies.
Cheaper Labour
This is of primary importance to manufacturers and consultancy firms. This can be profoundly witnessed in such regions as India and the Far East, where the average employee wages far undercut the wages found within the United Kingdom. Therefore, not only do companies save on their own overheads, but their payroll may be substantially less. All of this equates to increased revenue.
An Increase in Skilled Positions
As opposed to a handful of decades ago, many overseas applicants can offer an equivalent set of skills as the UK worker. This is mainly due to an increase in the quality of education as well as better access to the internet; resulting in a more globally and linguistically-aware foreign industry labour pool.
Emerging Markets
Another fundamental concern for many businesses is that overseas markets represent a relatively untapped niche that may provide valuable sources for revenue generation in the future. One only needs to look at China's recent expansion into Africa or the UK's increased presence in the Middle East to appreciate this factor.
An Increasingly Interconnected World
This may perhaps be one of the most fundamental underlying reasons for an overseas move. Previously, consultancy and customer service-oriented firms represented a substantial domestic market share. With the notable advances we have witnessed recently in high-speed communications and broadband access, a firm no longer has to be in one set physical location to provide such work.
These are but a few of the primary reasons why we have witnessed a large amount of jobs move overseas. While some may see this as the unavoidable future, many still believe that personalised and local services will offer a better appeal and continue to thrive.
