Two keys to offshoring: Education and training

Ill feeling and a backlash against offshoring will be less likely in the UK if workers and the wider population are educated as to what the shift in employment really means.

While business leaders around much of the world have long recognised the benefits - not just in terms of cost - of sourcing services as well as products or materials in other countries, the overwhelming perception is of countries such as the UK and the US 'shipping jobs overseas' to boost profit margins.

"Research into consumers' attitudes shows 60 per cent aren't only worried about offshoring but about their own jobs," said David Fleming, national secretary of union Amicus, speaking at an event on Tuesday evening run by silicon.com contributors ELA entitled 'The truth about offshore outsourcing'.

He said that the UK shouldn't look to "US-style protection" but is concerned that job losses could be bigger than some research, such as that undertaken by Evalueserve recently and sponsored by Indian industry association Nasscom, suggests.

Malcolm McKinnon, leader of the Europe and World Trade Group at the Department of Trade and Industry, said the government is "doing a serious amount of analysis" into the effects on the UK of offshoring.

But while genuine concerns about service-sector job losses will persist - understandably so - frank discussion of offshoring is now turning to something that the debate and industry has long lacked: openness.

Sunil Mehta, Nasscom VP, said: "We should place the issue of job losses into proper perspective. Only 11 per cent of service-sector jobs can be done offsite."

Of course, the fear is that increasingly the best-paid service-sector jobs - in areas such as equities research, IT and health care - will go overseas while the UK is left with plenty of vacancies for more menial work; all at a time when the population is being skilled up before entering the workforce. So only a tenth of jobs can go - but it's the top 10 per cent.

Mark Kobayashi-Hillary, author of Outsourcing to India: The Offshore Advantage, which is launched next week, points out that offshore locations will increasingly move up the value chain. The savings made by using an accountant in India could be far greater than using a call-centre agent. For the local workforce, the career is also more attractive.

The key, as anywhere, is in training. The consensus seems to be focusing on training for those who might lose a services-sector position in the UK and not find new work easily, and training for those in emerging economies in relevant areas.

While there a serious debate is finally emerging on the subject - focusing on societal and psychological as well as business issues - ensuring that training takes place everywhere and in the right way is the longer-term challenge.

Amicus' Fleming added: "We're at the foothills of this one, not at the end of it."

We'll be bringing you the second half of this story tomorrow, for all of us who have encountered sloppy customer care - wherever the person providing the 'service' was.