Niyamath Parveez

There are some industries where people have a lack of respect for the people working in authority but would be very lost without them. The most obvious one is the police and law enforcement agencies that provide safety and security but a comparison can be made to lawyers and solicitors. Whenever people are in potential trouble and need representation, there is a huge need for solicitors to provide the advice and assistance and perhaps even representation in order for justice to be best served.

Sometimes it is not even about earning a not guilty verdict for the person who has been charged with the crime. Justice is a wide term and ensuring that they receive the right punishment for the crime they committed is as much as what solicitors do. Of course, the fact that they make huge profits and charge such a large price for their actions is what annoys a great number of people. However, if you listen to the lawyers and solicitors, it is not as simple or as straightforward as this.

They are quick to inform people that they too have been affected by the economic recession that is blighting the world at the moment. Everyone is suffering and it makes sense that even lawyers would be struggling to keep their income greater than the costs. If they are unable to increase their income then the solution must resolve around lowering their costs. This is sometimes done by making any administration staff redundant but a firm needs to have administration in place in order to be able to do their job. With so many different cases to take care of and so many court visits to remember, a law firm requires good administrative skills to perform well and provide their clients with a quality service.

This has been made possible by the rise in outsourcing firms who are offering a provision of law back room services. The great thing about these firms is that they are usually ran and employed by staff who have a great deal of experience in working in the law industry which means that the work is being carried out by skilled staff. This is a tremendous boon and ensures that the law firm will have peace of mind about the work that is being carried out. Saving money is obviously very important but if the quality of the work being carried out is extremely poor then there would be no benefit in carrying this outsourcing task.

Recent weeks have seen three reasonably well known law firms state their intention to turn towards the world of law firm outsourcing. Hammonds, Travers Smith and Halliwells have all intimated that they intend to look into the possibilities of outsourcing. There is even the chance that this work may be outsourced all the way to India as the benefits of offshore outsourcing are able to provide an even greater benefit to law firms. There will obviously be displeasure at the UK losing jobs but that is not the concern for the firm at hand.

The car industry in the United Kingdom was one of the most prestigious throughout the nation’s most recent history. Not only in terms of jobs and production levels but for prestige and pride, the UK car manufacturers played a massive role in employing thousands of British citizens and ensuring demand for UK products all around the world. Thankfully the days of Britain’s evil Empire is long over, the days of UK rape and pillage is long dead but the car manufacturing sector never brought shame on the great nation unlike the attitude to slavery and race which used to permeate in the upper echelons of UK nobility and standing.

However, the UK motor industry may be about to go the same way as other former traditions and with the current economic situation being what it is, this may be a hammer blow. Even when the world economy was in better shape, global market forces was causing a great withdrawal from UK based manufacturing plants and sources but the ability to outsource labor and production has placed an even deeper pressure on these once proud industries. There are genuine concerns that the UK is turning into a service based island and these fears may be coming close to fruition.

One of the best loved car manufacturers in Britain and the United Kingdom was Jaguar, the company’s logo and main models being synonymous with class and style. Even now, the Jaguar logo instantly transports many people to the swinging 60s when Britain and London ruled the world bringing style and new ideas to the planet. This has long gone and Jaguar is no longer the symbol of virility that it once was. This can be shown in the current debate and confusion over Jaguar in the United Kingdom and where they may be going to next.

A recent announcement that Jaguar intended to close down one of their UK plants and move to India has undoubtedly caused consternation and up to 20 local MP’s have rallied to the cause and promised to take the argument to plant and company bosses. In the current economic climate, it is easy to see why the appeal of Indian outsourcing shines so brightly for Jaguar. Lower labor costs, with no real drop in quality are an unbelievable opportunity for any firm to take and there is no way that any competitor in Jaguar’s position would turn down this chance.

This therefore places Jaguar in a difficult position in that it has to seriously consider this outsourcing option in order to remain in control of their income and profits.

Further complications in this situation have arisen due to the integration between Jaguar and Land Rover, creating the JLR brand, which of course brought together two entities with their own production lines, HR staffing and so many other systems. This has allowed some merging of resources which should have seen the integrated company obtain a measure of benefit but given the current economic climate, the opportunity to make genuine savings are always available.

Northern Ireland has never had its troubles to seek and during the 1980s, the country experienced huge levels of unemployment, mainly caused by the troubles. The impact of the troubles led to huge unemployment as companies could not continue to trade safely and the nation struggled greatly. The north of Ireland has taken huge steps in recent years to rectify many of the problems and this has been shown in the development of the major cities and the increase in employment opportunities. Belfast is a city transformed and has benefited from an influx on new companies looking to take advantage of the bonuses and benefits offered to them to set up in the city.

Of course, the benefits that were to be had in Belfast were recognized by other countries and cities, which obviously looked to the progress made by the six counties. This has been seen in the advance of the offshore outsourcing around the world and this may be a negative factor in the future of Northern Ireland. This stands apart from the high level of progress made by Northern Ireland with one of the major firms who set up home in the nation was Bombardier. The company makes planes and was a massive employer in the nation and had a great impact on the local economy. The impact that a firm of this size can have on the local economy is huge. Not only do people benefit from having a wage but so many other local firms, not to mention the tax payer benefit to the local council experience an upturn in their fortunes. However, the same can be said in the opposite direction and if a firm decides to move away from a region, there can be difficulty for a great number of people.

In early 2009, Bombardier announced that they would have to make a number of job cuts across the board in order to maintain their financial equilibrium and status. It was announced that almost 1,000 posts at the Shorts facility in Belfast would be shed with over 300 employees being released from their jobs. The remaining posts that would be lost from Short would come from short contracting work, and this can be a huge impact on the local economy. These jobs will be heading to China, as yet another employer heads East to Asia as China looks to move up the chart of outsourcing nations. India is currently the top nation with regards to outsourcing but there is no doubt that China has the potential to take over this position. As the lure and benefits of outsourcing becomes ever more important and vital to a local economy, the battle for outsourcing jobs could become even more intense.

If this turns out to be the case, it is likely that nations such as China will be able to exert a higher level of pressure but the smaller nations could be able to offer lower wages. Depending on what the firm really wants from their outsourcing contract, there is still scope to find the right partner but it may be that the familiar faces take a greater control of the situation.

It seems as though barely a week is going by without some local council having a major decision to make about outsourcing deals. The latest council in a conundrum this week is based in England in the United Kingdom, with Herts facing a major split about their plans to outsource a great deal of the local council services. It has been said many times before but the fact that anything that involves jobs and employment at this current moment in time is going to be extremely emotive and will cause a lot of concern for people based in the local economy. The threat of job losses is very strong and there is not much optimism to get another job in the local region so many people believe that the local council should feel duty bound to provide jobs to the local economy. Providing jobs to the local economy will provide further benefits in a greater level of expenditure with shops and service providers noticing a benefit. There is also the fact there is less pressure being placed upon the benefits agencies so it can be seen that using the outsourcing capabilities so often used by big business is not always the answer for a local council.

However, it is the benefits that fall to big businesses that mean a local council like Herts needs to be considering the benefits that arise from outsourcing. By outsourcing IT and HR services, Hart District council believes that they can save around 10% of their budget at a stroke and given the uses this money could have, it is clear why it is of benefit. Utilizing outsourcing could ensure that a greater amount of money is able to be placed into the local health services or improving the roads and that is what the council is trying to achieve.

However, although the fact that 10% of savings could be made, across the board this amounts to about £5 for each constituent in the local region and some argue that this is not a large enough saving to justify switching the work. It needs to be remembered that when the council gives away its power over these issues, it could leave itself open to a poorer quality of service. Given this option, many people would prefer to pay an extra £5 per year in order for the local council to maintain control over its services. Whilst Hart District council would ensure that contractual agreements contained agreements and guarantees about the services that would be offered by the outsourcing firm, it would be impossible to guarantee everything. Given the fact that it would be run by a business who would be primarily concerned with profit, it is inevitable that certain services may find a dip in quality.

The positive and negative benefits allied to outsourcing really comes to a head when using outsourcing as a solution for local councils and it is easy to see why local Unions like Unison are up in arms about the consequences which may arise from this decision being made.

The UK, like many major nations at the moment, are facing up to a tough few years on the financial front as the recession takes hold. Given that the Labour party are desperate for votes, they know they cant be seen to let unemployment creep much higher than its current levels but with so many different factors impacting on the economy at the moment, they may have to take some unpopular moves. The nature of UK politics is very cyclical and it feels as though the UK is ready for a change which means that no matter what the Labour Party does, they will likely lose the next General Election and see the Conservative Party sweep back into power. However, Labour does know they can still place a small fight to save their position and part of this may revolve around their spending levels.

One way the Government can save money without costing a dip in the quality of the service of their needed tasks is through outsourcing. A Government that turns to outsourcing is always taking a risk due to the emotive reactions that people have at the prospect of losing their job but when it comes to finding the money to fund some vital new taskforce or provide cash for another area, it can be the best option open to a Governmental body. Therefore, the Labour parties in the UK have been making positive noises about moving all of its tax processing capabilities and tasks offshore in a move which some industry experts suggest could save the Government around £200m each year. There would be a certain irony if the Labour party brought this move in and the Conservatives were to benefit if they seize power next year but such is the nature of politics.

The UK Government already undertakes an element of its tax processing duties, like the Pay As You Earn elements and the self assessment forms with a company called Capgemini taking control of these. This firm is also responsible for the processing and management of the National Insurance records for the UK, so there is already a sizable amount of tax record jobs being sent outside of the UK. However, the move to fully outsource the tax work will come as a shock to many UK citizens, especially those who are currently without a job but given the economic nature of the world at the moment, all avenues have to be explored.

Of course, with these records being of a highly sensitive nature, there are some people who have concerns about the safety of them being allowed about of the country but they are no more at risk than they would be anywhere else in the UK. It is obvious that certain procedures must be taken to maintain the integrity and safety of these products but it should be noted that the reliability of outsourcing is much higher today than it has ever been. Just because the information is out of the UK does not mean it is at any greater risk.

Some of the most powerful people in British history have been aligned to trade unions and any keen follower of the working classes in the UK will be well aware of the power they used to hold. It is correct to use the past tense for talking about the scope and capabilities of the trade unions in Britain. Yes, there are still many different trade unions with a large membership but the power they have over firms and companies is a sorry amount compared to what they used to be able to do in their heyday. The Conservative government of the 1980s managed to dismantle and demolish the power and mystique that trade unions held and there has been very little seen from them since. Every so often, there will be a token rebellion or attempt at a strike but judging by results there is never too much to suggest that trade unions have the ability to change anything these days.

The latest move by trade unions to indicate that they have some gumption left in the United Kingdom is revolving around the issue of outsourcing and the fact that it can cause many of their members to lose their jobs. It is fair to say that in the current economic climate that outsourcing offers companies an excellent opportunity to reduce their labor costs and reduce their expenditure. This is obviously very appealing to the firm but it does not have to be explained why it is not in the interest of the employees. It also means that trade unions will have fewer members employed and less power in attracting people to join up with them. Which will ultimately lead to them having a reduced income level which means that the leaders of the trade unions will receive fewer perks and benefits that they are accustomed to. This means that outsourcing is a natural enemy to those who engage in outsourcing and it is not surprising to see so many of them attempt to make a stand against outsourcing.

GMB, Unison and Unite are three of the largest trade unions in Great Britain today and they have joined together to condemn the actions of the National Grid, who are in the process of outsourcing a number of their non-essential jobs out to India. The National Grid, who provide gas and power throughout Britain, are looking to move a great number of jobs out of the UK to India, a major offshore outsourcing player in the world market.

The fact that the National Grid have stated that this action is as much related to quality of service as opposed to cost has possibly enraged the trade unions even more and there is no doubt that this will form part of the protest that they are due to make against any possible decision to outsource UK jobs. On the 27th of July, National Grid will be hosting their annual general meeting and plans are already in motion to set up some form of protest to ensure that the board members and share holders are left with no doubt about the unpopularity of this move.

The citizens of Scotland like to moan about how wet and windy the weather is, but sometimes it can have its advantages. Whilst some countries suffer from heat-waves, the humble Scottish are usually experiencing damp and moist conditions which aren’t always great for humans but they can have benefits in storing computers. Yes, the fact that the Scottish temperature is a couple of degrees cooler than their London counterparts is more than enough to make a huge difference in the cost of storing a lot of computers or servers. This is due to the fact that these appliances are prone to overheating and need to be constantly monitored and the temperature will have an effect on how quickly they warm up. This cost benefit has led many firms to consider using Scotland for their computer storage centers and has positively impacted on Scotland’s ability to outsource.

Of course, a wet and windy climate also provides ample opportunity to make the most from alternative sources of power and energy and this is also something that is making Scotland look far more attractive to firms from other countries. There is an obvious need for many firms to show that they have a “green” or environmental outlook on life and being able to use outsourcing suppliers which have access to alternative sources of energy is a fantastic PR boost. The minimum wage that is paid in Scotland may not be as low as the equivalent wages in countries in Asia but for the overall benefits that will come to a firm, it is apparent why Scotland is a key outsourcing partner.

The best example of this comes from the plans submitted by ‘Lockerbie Data Centres’ which really goes the extra mile with regards to environmentally friendly plans. The company hopes to harness the power from wind farms situated close to their center and in return, they propose they would be able to use the heat built up in their data center to provide a source of renewable energy for over 700 local homes. This is a perfect example of giving something back to the community and would be considered a great PR boost for anyone needing to extend their “green” credentials.

Add to that the fact there has been a definite move to IT training and ensuring large swathes of the population have computer skills and it is all to noticeable that Scotland is perfectly suited to offer computer services to firms and this is something many developers in Scotland are keen to take advantage of. There is currently a group of developers and investors looking to create new centers in Scotland at various locations throughout the nation. Some are keen to develop in the Borders area, and this will benefit from being situated close to England. Others are keen to move to the Highlands in order to use the breathtaking scenery and quieter pace of life to attract foreign companies to Scotland. The beauty about Scotland is that it is a small country and it is quite easy to comfortably travel its length in a day by road. It may not be something that you would wish to do every day but it is certainly an option and this means that outsourcing to Scotland is an extremely viable option which could bring benefits to many countries.

Local governments and public bodies are in a no win situation for some decisions they have to make. Tax payers money and getting the most efficient use from it is extremely important and the public would be up in arms if they thought their money was being wasted. Unfortunately, one way that a public service or non departmental governing body can reduce costs is to examine outsourcing as a way of lowering their labor costs. The people who are strongly opposed to the inefficient use of tax payer’s money should be delighted about the savings that this move will bring but of course, as there is liable to be a local loss of employment arising from outsourcing, there is public outcry. This means that whatever decisions a council or government makes, some parties will take great discomfort and displeasure from it.

This situation is perfectly explained by examining the issues facing the Transit Board in North County at the moment who are struggling to offer a bus service for the income it brings in. There should be a duty placed on bodies like this to ensure a public transport provision is offered to the local community but if the current method is not suitable, then alternative methods should be explored. This is the thinking behind the Board’s decision to look for tenders from firms who are willing to provide an outsourcing service to run their buses. The Board’s way of thinking can be seen that they cannot afford to run the service in its current form but by choosing a different method of providing the service, they will be able to ensure a transit system is provided for the local community. It is certainly not ideal but it is a better alternative than the Transit Board pulling out all conveyance vehicles from the area.

Of course, this move has been criticized by some quarters with six bus drivers making a frenzied opposition to these proposals. As they rightly point out, for the lower wages that the outsourcing firm will be offering, there is next to no chance of the currently highly skilled staff being able to be kept on or for the staff to justify the wage cut. This is extremely unfortunate and the loss of experience and skill from the workplace is a very unfortunate side effect from outsourcing. It is always hoped that the level of expertise brought in by outsourcing will be enough to counter the people who have left but on occasions, it is not.

The potential job losses will cause a lot of difficulties in gaining full public approval but the fact that the same body has managed to undertake similar outsourcing practices on a number of its other lines, without any noticeable loss of quality or service, should be enough to convince the Board that this is a move worth taking. It is true to say that outsourcing will cause a great number of issues and conflicts for a firm and the emotive nature of the move can be never be discounted easily.

The news of job losses is hardly a surprising story these days with so many firms having to cut back on their labor costs or even go release all of their staff. Such is the scale of the credit crunch that is blighting the world at the moment, no one is really safe with respect to their job but there are still companies where job losses make people wince. The banking industry has clearly been affected heavily and even though there have been a number of redundancies in the industry, there are still more expected to come. One of the recent announcements has come from Lloyds, who have said that over 2,000 jobs are being shed.

Part of the reason that a company like Lloyds can make this sort of decision and still keep trading successfully is due to the importance of outsourcing. There seems to be a difference of opinion these days over whether outsourcing is still popular and improving. Some say yes, some say no and it’s all a matter of what you are basing your expectations on. In the current climate, it is probably unlikely that any company or industry will have true success but the outsourcing industry appears to be reacting okay to the current slump and will likely be okay in the long run. However, there are some political pressures that are impacting on the ability of some firms and companies to offshore outsource. When jobs are being lost left, right and centre, it can be a PR disaster for some companies to offshore their work to a different country. They would be viewed as monsters by the public and it could lead to a massive drop in sales, which no organization needs at this moment in time. Therefore, some companies are finding it makes sense to place some clauses in their outsourcing contracts to ensure the public doesn’t think too badly of them.

The British government has long had outsourcing contracts which state that the jobs must be retained in the United Kingdom, which clearly negates some of the benefits that will arise from using outsourcing. As other countries have standard of living and minimum wage levels that are far lower than their UK equivalent, it stands to reason that it will be possible to find lower wage levels in other countries. Not being able to send tehse jobs abroad will make it harder for an outsourcing supplier to competitively tender for jobs but many are finding a way around it.

It has been noted recently that some Governmental departments and Lloyds Banking Group have had an increasing number of workers being shipped in to work with them as outsourcing staff from the company Capgemini. According to notorious right wing English newspaper the Daily Mail, these workers are being shipped over from India in an attempt to undercut the UK workers and the paper thinks this is a disgrace given that the UK unemployment levels have topped the 2m mark. Unsurprisingly, there has been no official comment made about this situation so it is unclear whether it is true or not but if so, it could well spark a dangerous precedent with regards the future of outsourcing.