Menu
08/11/2004
Pressure on firms to ‘off-shore’ growing, says CBI
A CBI survey has revealed that many companies feel under growing pressure to relocate parts of their business overseas.
Opening the CBI annual conference in Birmingham, employers boss Digby Jones argued that that the benefits of off-shoring outweighed the drawbacks; that the process would increase productivity, profitability and economic growth.
Co-sponsored by the CBI and Alba, a MORI survey on the topic revealed that 51% of respondents said pressure to off-shore had increased over the past two years, with 21% describing these pressures as "very great".
Almost one third of respondents said they had taken “some activities overseas” and almost one fifth were considering doing so.
Mr Jones, the CBI’s Director-General, said: "Off-shoring is now part-and-parcel of doing business in the global economy.
"Make no mistake, this is a survival issue. Anyone who believes that firms have a great deal of choice are naive. Companies know if they don't do it, somebody else will. If competitors act and they don't respond, they may put their business at risk.
"It is short-sighted simply to see all this as a bad thing. Globalisation was made for Britain. Off-shoring means greater productivity and more efficient goods and services. It also means UK jobs will be of higher quality, more skilled and in many cases more secure.”
The survey showed the trend was increasingly extending beyond manufacturing to areas like information technology, financial services, design, and even research and development.
Mr Jones urged the government to avoid forcing firms to off-shore through an increase in policies unfriendly to business He said that the rising cost of compliance with regulation was starting to “drive firms abroad”.
The CBI survey revealed the main reason cited for off-shoring was to cut costs, followed by improving the speed and quality of services. But restrictive regulation too played a part with 26% of respondents currently considering a move saying that legislation was a reason.
China and India remain the most popular off-shore locations, but firms view Eastern Europe as increasingly attractive, with Poland and the Czech Republic leading the pack.
(SP/MB)
Opening the CBI annual conference in Birmingham, employers boss Digby Jones argued that that the benefits of off-shoring outweighed the drawbacks; that the process would increase productivity, profitability and economic growth.
Co-sponsored by the CBI and Alba, a MORI survey on the topic revealed that 51% of respondents said pressure to off-shore had increased over the past two years, with 21% describing these pressures as "very great".
Almost one third of respondents said they had taken “some activities overseas” and almost one fifth were considering doing so.
Mr Jones, the CBI’s Director-General, said: "Off-shoring is now part-and-parcel of doing business in the global economy.
"Make no mistake, this is a survival issue. Anyone who believes that firms have a great deal of choice are naive. Companies know if they don't do it, somebody else will. If competitors act and they don't respond, they may put their business at risk.
"It is short-sighted simply to see all this as a bad thing. Globalisation was made for Britain. Off-shoring means greater productivity and more efficient goods and services. It also means UK jobs will be of higher quality, more skilled and in many cases more secure.”
The survey showed the trend was increasingly extending beyond manufacturing to areas like information technology, financial services, design, and even research and development.
Mr Jones urged the government to avoid forcing firms to off-shore through an increase in policies unfriendly to business He said that the rising cost of compliance with regulation was starting to “drive firms abroad”.
The CBI survey revealed the main reason cited for off-shoring was to cut costs, followed by improving the speed and quality of services. But restrictive regulation too played a part with 26% of respondents currently considering a move saying that legislation was a reason.
China and India remain the most popular off-shore locations, but firms view Eastern Europe as increasingly attractive, with Poland and the Czech Republic leading the pack.
(SP/MB)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
15 November 2024
Electric Shock Report To Launch At NI's Premier Electrical Industry Event
A new report aimed at tackling the widespread underreporting of electric shocks within the electrical industry in Northern Ireland will be launched later this month, as part of the Electrical Training Trust's (ETT) 'Save Our Sparks' campaign.
Electric Shock Report To Launch At NI's Premier Electrical Industry Event
A new report aimed at tackling the widespread underreporting of electric shocks within the electrical industry in Northern Ireland will be launched later this month, as part of the Electrical Training Trust's (ETT) 'Save Our Sparks' campaign.
13 September 2010
Construction Decline 'Slowing'
The contraction in the country's construction market has slowed to its lowest rate since June 2007, suggesting a tentative recovery in the sector. But, the construction activity fell again for the 39th month in a row in August, according to the latest Construction Purchasing Mangers index from Ulster Bank.
Construction Decline 'Slowing'
The contraction in the country's construction market has slowed to its lowest rate since June 2007, suggesting a tentative recovery in the sector. But, the construction activity fell again for the 39th month in a row in August, according to the latest Construction Purchasing Mangers index from Ulster Bank.
05 December 2003
Staff represenation needed for small businesses, say TUC
Three years after the majority of UK workers won the right to be represented by a union, six million employees in small firms are still being denied a voice at work, according to a report from the TUC.
Staff represenation needed for small businesses, say TUC
Three years after the majority of UK workers won the right to be represented by a union, six million employees in small firms are still being denied a voice at work, according to a report from the TUC.
31 October 2005
SMEs face tough short-term prospects
Higher oil and energy prices have combined with falling demand and stagnating prices to make life tough for small and medium-sized manufacturers – and the CBI say many firms fear worse is yet to come.
SMEs face tough short-term prospects
Higher oil and energy prices have combined with falling demand and stagnating prices to make life tough for small and medium-sized manufacturers – and the CBI say many firms fear worse is yet to come.
16 May 2005
Employers called on to tackle stress levels
Rising stress levels at work are now costing 10% of the UK’s Gross National Product, mental health charity, Mind, has reported. A new report published by the charity found that 58% of workers complained of job stress and 12.
Employers called on to tackle stress levels
Rising stress levels at work are now costing 10% of the UK’s Gross National Product, mental health charity, Mind, has reported. A new report published by the charity found that 58% of workers complained of job stress and 12.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
