UK's outsourcing revenue to touch $27 bn in 3 years
Reuters is the latest British company to plan moving some of its UK operations to India, reports Vijay Dutt.india Updated: Dec 29, 2003 12:21 IST
Reuters has become the latest British company to plan moving some of its UK operations to India. The shift of call centres and other operations by British companies is continuing despite agitations and threats by many powerful unions.
Reuters, one of the oldest news and information group, has confirmed that it was looking at building a new back-office facility in either Hyderabad or Bangalore for its core content creation services division. It presently employs 1150 in the UK, New York, Europe and Asia.
The announcement of the plan to shift to India naturally means an advance notice of job losses in this country. A Reuters spokeswoman is reported to have said that any job cuts would be included in the 3000 redundancies announced in February as a part of a cost-cutting programme, named " Fast Forward".
The content creation services division of Reuters collates and analyses the data that appears on its screen used by investors. It is said that 90 per cent of the group's revenue comes from screen sales and the remaining 10 per cent from selling news to papers and broadcasters.
Reuters will join other companies including BT, Prudential, British Airways, Citibank, Standard Chartered and P&O Nedllyod who have taken advantage low wages but high productivity levels. It has helped push UK foreign investments to £5 billion. The current outsourcing revenue estimated at $11.36 billion per year could push upwards to an estimated $27.06 billion by 2006.
The Communication Workers Union estimates that more than 200,000 UK jobs could be lost in the next five years. China is the only other country that would give India a run in the race to attract operation shifting by foreign companies.
Jobs Lost To India
Fidelity Investments: 300
Friends Provident: 100
British Airways: 1500
Goldman Sachs: 250
(Source: The Times Business)
First Published: Dec 25, 2003 21:33 IST