Almost a third of UK jobs could move overseas permanently as
more than 80% of UK multinationals consider moving operations
abroad. This could permanently damage the UK job market and
economy, according to research.
The UK is becoming less competitive in the labour market because
of a shortage of skills as well as high taxes and wages, says
Roland Berger Strategy Consultants.
The recession has forced large companies to re-examine the UK as
a location to run their businesses.
The research, based on interviews with 200 UK multinationals.
revealed the leaders of these firms think there is potential for
about a third of their UK jobs to be
transferred to lower-cost economies by 2015.
"The recession has prompted our largest companies to re-examine
the UK as a business location in terms of skills, cost and
infrastructure. Globalisation is enabling them to consider
unprecedented levels of
offshoring across all aspects of their business, which could
result in permanent damage to the UK job market and economy," said
David Stern, UK managing partner at Roland Berger Strategy
Consultants.
According to the research, it is not only non-core business
functions that could be offshored. The survey found that 13% have
already got their head offices outside the UK and another 38% are
considering following suit.
More than half of firms said they have already moved, or are
considering moving, key business functions such as customer service
(64%), R&D (61%) and sales management (59%) abroad.