Lack of jobs and outsourcing overseas

liddiaellen

I have always been anti companies outsourcing overseas. I have recently seen that in America the same issues as i believe we have here with outsourcing exist, the American government are now debating Tax breaks for companies to insource, do you think we should do the same ?

I have contacted a number of MP,s as if I am unemployed and cant find a job I feel I should do something positive.

What do you think about the situation, it is I believe at minimum tens of thousands of jobs if not hundreds of thousands of jobs, in industry, accounts, administration and call centres.

I don't think it would cost if the Tax breaks were made depending on the number of jobs. These should be equivalent to the average benefit per unemployed person plus the average industry tax, in my opinion, I would like to here your opinion.:beer:

tomtontom

The tax breaks you describe would not cover the cost of staffing (which includes far more than wages) and the additional infrastructure needed to house staff and equipment. I don't think there is a solution to the problem whilst overseas resources are so cheap.

Dreamscometrue

liddiaellen wrote: »

What do you think about the situation, it is I believe at minimum tens of thousands of jobs if not hundreds of thousands of jobs, in industry, accounts, administration and call centres.

Not to mention IT. I was contacted a couple of months ago re an IT contract in London. The agent told me that four Asians were returning to their homeland suddenly and they wanted to replace the four with two. I never heard back despite having over 20 years contracting experience. I'm even wondering whether it may have been a hoax call or did they replace the four Asians with two new Asians? Who knows. My last contract ended 15 months ago and I have not had a single interview despite being prepared to work anywhere here or abroad! I'm not claiming any benefits so unfortunately I'm not counted in the stats.

liddiaellen

tomtontom wrote: »

The tax breaks you describe would not cover the cost of staffing (which includes far more than wages) and the additional infrastructure needed to house staff and equipment. I don't think there is a solution to the problem whilst overseas resources are so cheap.

Not sure if you understood my post. Many jobs outsourced abroad and I have read figures to say possibly the majority are small teams maybe only 5 people, lots of 3s or 6s can equal thousands. These could be easily fitted into many companies existing buildings.

With regards to larger departments you could always inshore jobs whilst leaving the work with a UK outsource agency. In other words you get the Tax benefits for bringing the jobs home but location is the problem of the company in the UK you outsource too.

In countries like India wages are going up very fast due to the amount of work pooring in. It is becoming less viable. The quality of staff are also going down as a supply and demand factor.

I know Tax breaks may not pay the whole way but for companies thinking of in-sourcing and finding cost prohibitive it may add just enough to tip the balance. Another point I didnt make is what is to stop your local authority saying we want these xxxx number of jobs here lets give reduced rates to those companies coming home for the first year.

There is also the bonus to companies that if they return to uk manufacture or IT it may well improve sales !!!

tomtontom

liddiaellen wrote: »

Not sure if you understood my post. Many jobs outsourced abroad and I have read figures to say possibly the majority are small teams maybe only 5 people, lots of 3s or 6s can equal thousands. These could be easily fitted into many companies existing buildings.

With regards to larger departments you could always inshore jobs whilst leaving the work with a UK outsource agency. In other words you get the Tax benefits for bringing the jobs home but location is the problem of the company in the UK you outsource too.

In countries like India wages are going up very fast due to the amount of work pooring in. It is becoming less viable. The quality of staff are also going down as a supply and demand factor.

I know Tax breaks may not pay the whole way but for companies thinking of in-sourcing and finding cost prohibitive it may add just enough to tip the balance. Another point I didnt make is what is to stop your local authority saying we want these xxxx number of jobs here lets give reduced rates to those companies coming home for the first year.

There is also the bonus to companies that if they return to uk manufacture or IT it may well improve sales !!!

I understood your post. You misunderstand the costs of maintaining a UK workforce.

Poppycat

haygard reported for :spam:

liddiaellen

I find your attitude rude and arrogant. Yes I understand the costs of maintaining a UK workforce have worked in finance for many years. I however believe that many companies are not happy abroad and would like to come home, and if we were to help ease their burden in doing so we should as it will create jobs.
If you think more money is required how about the billions that are being paid in Tax credits to immigrants from other EU states we could free up that or are billions not enough either.
I posed a question, i think would help create jobs, after all something needs to be done.
You came back with a pompous derogatory attitude.
A simple I do not agree but we could do this or it would cost this, which we can get from here would of been more productive to the conversation.

bugslet

It isn't only manufacturing and admin jobs that move abroad.

With the increasing harmonisation of the EU countries and the addition especially of the Eastern European countries coupled with a relaxation on the rules concerning cabotage ( regulations concerning loads being delivered and collected from a country other than your own), means that work that was once done by UK haulage firms and their drivers, are now being done by E European companies.

Back in the mid 90s, around 8 out 10 trucks going through Dover were British, now it's around 3 out of 10.

It's a huge loss in tax revenue.

tomtontom

liddiaellen wrote: »

I find your attitude rude and arrogant. Yes I understand the costs of maintaining a UK workforce have worked in finance for many years. I however believe that many companies are not happy abroad and would like to come home, and if we were to help ease their burden in doing so we should as it will create jobs.
If you think more money is required how about the billions that are being paid in Tax credits to immigrants from other EU states we could free up that or are billions not enough either.
I posed a question, i think would help create jobs, after all something needs to be done.
You came back with a pompous derogatory attitude.
A simple I do not agree but we could do this or it would cost this, which we can get from here would of been more productive to the conversation.

You lost any credibility when you sought to blame immigrants. You'll find that the net economic benefit of immigration is positive, they are certainly not costing the country billions in the way you suggest.

If you can back up your assertions with facts, rather than what you 'believe' you may attract more favourable responses.

InsideInsurance

You seem to be switching between talking about outsourcing and offshoring. These are two mutually exclusive matters. You can outsource without offshoring and you can offshore without outsourcing.

If you are talking about tax breaks you need to decide who you want to give it to. The outsourcer/ employer or the client? Your interchanging would suggest potentially both, pay the client who chooses a UK based outsourcing partner and also pay the outsourcer who houses its staff in the UK. Before too long you are paying more in tax breaks than the value of the money you are retaining here.

Of cause many UK based companies are offshoring without outsourcing and so whilst some monies leave the UK the reality is that greater profit is now made by the UK company and so they pay more corporation tax and have more money to expand/ invest/ employ staff etc.

You'd probably have a much bigger impact on things if you actually just banned foreign manufacture of products rather than targeting the service element of companies. Of cause you then have to expect companies like Primark to disappear and average price of goods to sky rocket.

cazziebo

I think Tomtontom is making a very valid point, not an arrogant one.

Tax reliefs and grants already exist for companies creating jobs in the UK. The reality is it is so much cheaper for businesses to outsource - a senior manager in an insurance company told me that the employment costs for a clerk in England was 30k, but only 6k in India. This kind of gap can't be compensated in a tax neutral way.

There is a trend to bring more of the "customer critical" jobs back to the UK, partly due to a demand from the consumer to have UK based call centres. The banks are seeing the real cost of outsourcing/offshoring their IT - their systems are falling apart.

Immigration is a red herring. Immigrants to the UK contribute more to the economy than they cost.