Survey: 275,000 telecom jobs to go offshore by 2008

[Renew Deal]

Global operators are expected to "off-shore" 5 percent of the industry's 5.5 million-strong labor force

By Scarlet Pruitt, IDG News Service March 24, 2004

Telecommunications operators will be the next group to benefit from the cost savings and enhanced services made possible by moving operations overseas, according to a new survey conducted by Deloitte Research.

Global operators are expected to "off-shore" 5 percent of the industry's 5.5 million-strong labor force, or 275,000 jobs, by 2008, the professional services and advice organization said Wednesday.

What's more, the industry is expected to reap cost savings of $14 billion a year by 2008 from improved call center capabilities and enhanced broadband and mobile data services, the researcher said.

So-called '"offshoring" -- when companies move jobs and sometimes operations from their home countries to locations where labor and business costs are cheaper -- has become common in the high tech and financial services industries. Telecommunications companies are now poised to take advantage of the trend, Deloitte said, adding that early adopters could gain a 20 percent to 30 percent cost savings by 2008.
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http://www.infoworld.com/article/04/03/24/HNtelecomjobs_1.html

[ramapo]

1. This is good news

Another hopeful sign for the economy. After all, outsourcing is good for us as it produces a net increase in jobs.

We can look forward to being better off in the future because of this positive news.