Offshoring is nothing new. It has been going on for some time but has become increasingly important over the past 10 years. The latest trend is that companies in Europe move production to low cost countries such as China, India and South America. However, Great Britain has been a favourable choice for foreign investors as well.
The Advanced Institute of Management Research reports that thousands of new jobs are created in Great Britain by companies that have chosen to relocate. Great Britain has been proved to be an extraordinary location for foreign investors and international businesses due to the broad knowledge and favourable geographical location.
The country is also an attractive location due to the knowledge within IT, recruitment, architecture and advertising.
In recent years, companies in Great Britain have chosen to relocate jobs within the service sector to countries such as China, India and South America. The reasons are many, but these countries offer hard working individuals with great language skills to a lower cost.
IT jobs, banking and insurance companies are all examples of industries that prefer to move abroad. It has been showed that companies are able to lower their production costs by 45 percent when moving production to low wage countries.
Most analysts agree that offshoring is beneficial for all parties, including the country where jobs are lost. When companies are able to reduce their costs, consumers are able to buy goods cheaper and consume in other countries.
Cecilia Helland