Response to the Budget 2007: How India can fill the UK skills gap

It's a positive move by the Government to invest in the UK workforce. The UK is facing a skills crisis, and unless we address the issue directly, the British economy will not sustain its recent growth. It will be prudent for British companies to think of filling jobs by sourcing talent on a global basis - much the same as they look at business opportunities worldwide.

Large organisations will be well advised to acquire or invest in Indian companies with talented employees to bridge the UK skills shortage. A balanced approach to outsourcing work is the healthiest option and one that will complement the UK economy and create new jobs in the UK workforce.

India is already the third largest investor in the UK, after the US and Japan, that generated 1,449 new jobs in the year to March 2006, according to the UK Inward Investment Report 2005-06. Indian companies invested around $2 billion in 76 projects during that period. Indian companies also accounted for 30% of all foreign investment in London last year creating 400 new jobs, making it the second largest overseas investor in the city after the US,
according to Think London.

Companies have already seen the value in Indian employees. Rather than outsourcing jobs, many businesses are instead taking the acquisition route and buying skills overseas. With a GDP growth rate of 9 per cent and 70 per cent of 1.1 billion people still under 35 years of age, tapping India's domestic market is also critical for the future growth of UK corporations."

Investing or acquiring in India helps solves two problems at once: address the skills crisis and provide an engine of future growth in an increasingly globally competitive marketplace.