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Outsourcing Misconstrued by the British Public

by: Sarah Joson

Monday, May 14, 2012 | Outsourcing News |

There seems to be a discrepancy between the survey commissioned by the National Outsourcing Association (NOA) entitled 'Public Perception of Outsourcing' and the study done by the Business Services Association (BSA). According to the survey by NOA, outsourcing is perceived by the public as a detrimental component to the British economy, while the latter showed that it contributed eight percent to UK’s GDP, £14 billion in business taxes, and £21 billion outsourcers' income tax.

NOA believes that the respondents have negative perceptions of outsourcing due to lack of information about the process. More than half (53 percent) believe that outsourcing is responsible for job losses, 65 percent associate it with cost reduction, and 45 percent link it to India. Moreover, only 19 percent believe that outsourcing is a solution for the UK’s current economic state.

NOA also stated that the public often confuse outsourcing with offshore captive projects. With offshore captives, there’s typically no outsourcing involved and the operation is fully owned by the main company. In fact, only 27 percent of the respondents know the difference.

Even if the British public are vocal of their feelings towards the strategy, NOA Chairman Martyn Hart said the association can help the public understand that outsourcing will help businesses and the nation grow.


Source:
http://www.pcadvisor.co.uk/

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