The ascendency of India as an economic world power

These days, outsourcing is a great source for Indian economy as it gives a huge boost to its growth. India is getting works from different countries especially from US and some European countries. This is for sure a positive side for any country. However, there are some protests going on in the UK as British workers are unhappy because their jobs are being sent to India. Recently, the National Health Service (NHS) and Prudential have said that they are going to shift some jobs form UK to India. Naturally, some workers are not happy as their jobs will be axed.

Hindustan Times reported:

The National Health Service (NHS) has announced that it will export hundreds of clerical jobs, including accounting functions, to India. "I recently gave permission to outsource 60 per cent of the work to India," NHS deputy finance director Peter Coates said in Mumbai.

 

"It could go higher, but the constraint is that we cannot move jobs to India at the expense of shedding jobs in the (United Kingdom). Politics will be an important factor," he added.

 

The latest traffic of outsourcing from Britain to India involves the insurance giant Prudential, which this week confirmed that it will offshore 130 jobs from its main Scottish site to India over the next 12-18 months.

 

The company, which employs more than 2,500 people at Craigforth, near Stirling, said the jobs would be moved to Mumbai - alongside a further 80 currently based in Reading. It said the move was part of its pledge made last year to cut 150 million pounds from the costs of its UK business.”

However, some India based multinational companies are going to invest in UK that will create some new jobs for the British people. So, to some extent, these new jobs will work to make a balance. The report also stated:

As Indian investors stalk British companies with takeover offers, the economic logic of outsourcing operations to India continues to direct the growth plans of major companies, despite protests from the affected employees.

Tata Steel has been the latest big budget Indian investor, having taken over Corus in January. The spate of takeovers by Indian investors and the creation of jobs in Britain has partially reduced the decibel level of protests against outsourcing to India.

This way, British companies are getting cheap labor and it reduces their cost and India is getting foreign currency which is a boom for its economy. So, I think this is a win-win situation. What do you think?