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What are the roles and impacts of computers and communications technology in the increase of trans-border economic activity?

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What are the roles and impacts of computers and communications technology in the increase of trans-border economic activity? I am specifically going to speak about foreign workers handling UK consumer calls and IT jobs in general, better known as offshoring or out-sourcing. Below I have tried to out-line some of the good and bad points about the subject Benefits The advocates of offshoring describe it as having high potential; moving jobs to a low cost labour market will save money and provide a good source of employment for the local people. Also as developing countries become richer, they will also buy more from us and invest more in our economy. UK exports of goods and services to India alone are already worth around �2.5billion a year, securing thousands of UK jobs. The Department of Trade and Industry (DTI) believe that the UK also stands to gain from growing world prosperity and a bigger global market for British goods and services. Offshoring will allow Britain to remain competitive, ensuring that the UK economy continues to generate new and sustainable jobs and new business opportunities. ...read more.


I think offshoring has a large share of the blame for the job shortage here in Britain. It's amazing to see how the definition of cheap labour has changed - at first the term was only associated with people working in terrible conditions for next to nothing. But now it extends to multinational companies and corporations moving skilled jobs abroad to save money, all at the expense of the British people. Below is a couple of articles I found that I think compliment what I have written. Bank customers' fury at India call centres 12:41pm 18th October 2005 Staff at Lloyds TSB are facing high levels of customer dissatisfaction about the bank's policy of transferring work to India, a union has claimed. A survey of nearly 2,000 branch managers and staff found that 96 per cent of people thought customers weren't happy dealing with staff in India, while 83 per cent thought customers received worst service as a result. More than half of staff claimed they received complaints or adverse comments about the Indian operation every day, and a further third of people said they received them at least every week. ...read more.


http://www.dailymail.co.uk/pages/live/articles/money/money.html?in_article_id=365776&in_page_id=1804 The Impact of Global Sourcing on the UK Economy 2003-10, commissioned by the National Association of Software and Service Companies (NASSCOM), an umbrella organisation for IT software and service organisations in India, estimates that by 2010 the UK could face a shortfall of 700,000 jobs as a result of an aging population and slow population growth. If the problem isn't addressed it reckons that economic growth in the UK could slow, leading to a loss of �113 billion. Outsourcing would not only bridge that gap, it would also help generate extra income. For the report claims that for every �100 of work outsourced offshore, up to �141 is re-invested directly back into the UK economy. This upbeat assessment of the benefits of exporting jobs comes even though the report acknowledges that more than 250,000 UK jobs would be lost as a result of offshoring. But it argues that while the impact of offshoring on the UK workforce is "real" and "will lead to the displacement of workers", it insists that the UK labour market is flexible enough to deal with the problem. http://www.theregister.co.uk/2004/01/28/sending_jobs_overseas_could_boost/ ?? ?? ?? ?? - 1 - ...read more.

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