Outsourcing of high-skill jobs to India on rise, says ILO report

The report also says that while such a ‘‘qualitative’’ change in the ‘‘international division of labour has a certain logical appeal’’, the data on the matter seems to be incomplete. It states that there could be other benefits of outsourcing besides reduced costs, like new markets for the home-country goods and services.

‘‘According to one study, for every dollar spent on outsourcing, the US domestic economy gains $1.12-1.14, while the foreign host country receives $0.33.’’ The report says that as a policy, there should be renovation of labour market institutions so that they are equipped to keep pace with the rate of loss of high-paying jobs in the world. ‘‘This underscores the need for a focus on ‘supply-side preparedness’, with a particular emphasis on providing access to skills relevant to the future demand for labour.’’

It emphasises that ‘‘where the people really work is as important as a focus on emerging, dynamic sectors’’.