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OFFSHORE OUTSOURCING OF IT-ACTIVITIES

OFFSHORE OUTSOURCING OF IT-ACTIVITIES. Carla Kiburg Union Official IT-sector The Netherlands. WHO AM I?. Union Official: negotiations on collective agreements in IT-companies Rep. in UNI EU IT Committee Country coordinator MOOS project. PROGRAM. New trend or normal practice?

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OFFSHORE OUTSOURCING OF IT-ACTIVITIES

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  1. OFFSHORE OUTSOURCING OF IT-ACTIVITIES Carla Kiburg Union Official IT-sector The Netherlands ETUC KRAKOW 08-10 July 2005

  2. WHO AM I? • Union Official: • negotiations on collective agreements in IT-companies • Rep. in UNI EU IT Committee • Country coordinator MOOS project ETUC KRAKOW 08-10 July 2005

  3. PROGRAM • New trend or normal practice? • Definition • Where to & What • Job losses • Growth in employment & export • Role Works Counsel • New jobs • Union response: • FNV Bondgenoten NL • UNI Europa: MOOS ETUC KRAKOW 08-10 July 2005

  4. NEW TREND OR NORMAL PRACTICE? • “Old” industries: textiles, mechanics • Fabrication of new industrial goods: radio, television, mobile • So, what’s new? : Service Sector ETUC KRAKOW 08-10 July 2005

  5. DEFINITIONS • Offshoring ~ Oil business?? • Bestshoring = EDS • Rightshoring = CapGemini • Global sourcing ~ Multinationals • Nearshoring ~ former Eastern Europe • OECD: ETUC KRAKOW 08-10 July 2005

  6. DEFINITION OECD Offshore insourcing Offshore outsourcing ETUC KRAKOW 08-10 July 2005

  7. JOBS OFFSHORING ETUC KRAKOW 08-10 July 2005

  8. WHERE TO & WHAT • China: • Embedded software • Hardware services Russia:High-end software engineering • Eireland: • Pakkaged applications • Localization • Product development • Canada: • BPO • Contact centers • Application outsourcing • Phillippines: • BPO • Contact Centers • Animation • India: • BPO • ITO • Application Outsourcing • Contact centers • Product development • Israel: • High-end software • Learning systems ETUC KRAKOW 08-10 July 2005

  9. JOB LOSSES • IDC : 2003 1% - 2007 9% • Forrester: 493.000/12 years (8%) in USA • E&Y : 15.000 in 2004 NL only • GPI NL: 5-10.000/yr in 10 yrs • OECD: ANECDOTICAL NO OFFICIAL STATISTICS DEFINITIONAL MEASUREMENT PROBLEMS ETUC KRAKOW 08-10 July 2005

  10. GROWTH IN EMPLOYMENT PT AT HU CY SK EL EE SL LT CH NO CZ FR DE FI IT LV SE IE UK LU BG ES BE NL RO DK Growth in employment in computer and related activities in Europe, 2000-2003 (%) ETUC KRAKOW 08-10 July 2005

  11. EXPORT GROWTH BCI SERVICES ETUC KRAKOW 08-10 July 2005

  12. HIGH FAILURE RATE ETUC KRAKOW 08-10 July 2005

  13. WORKS COUNSEL IN NL • Right of advice by law • No right to avoid/stop offshoring • Process support • Collective agreements ETUC KRAKOW 08-10 July 2005

  14. NEW JOBS RWI (government, employers, unions): • Growth independent of offshoring • Difficult to predict how much • Moderate scenario nt growth 13% in NL • Shortage IT-professionals expected • New competences: ETUC KRAKOW 08-10 July 2005

  15. NEW COMPETENCES • High customer intimacy • Complex business processes • Commercial skills • Communicative skills • Innovative ICT-solutions • Custom made solutions ETUC KRAKOW 08-10 July 2005

  16. FORSEEABLE PROBLEMS BY FNV BONDGENOTEN • Time gap: loss old – new work • Mismatch competences: nowadays - tomorrows work • 50% failure rate: Loss of employees prospects, here and there • Too many middle too few highly educated IT-pro’s (NL) • Still 13.300 unemployed IT-pro’s (NL) ETUC KRAKOW 08-10 July 2005

  17. NEW POLICY PROPOSALS FNV BONDGENOTEN Preventive and pro-active • Employment policy: Position individual on labourmarket; education/employability; certification of knowledge by experience • Efficiency test: usefullness/ necessity/carefullness/social dialogue in-company • Economical structure NL: innovation/execution ICT-plans • Social plan: • local: next to 1.: substitutional work incompany/education/outplacement/no-time-gap-strategy/self-employment programs/ • International: Code of conduct: ILO/OECD/chain responsibility of economical partners/ (related to UNI Offshore Outsourcing Charter) ETUC KRAKOW 08-10 July 2005

  18. UNI EUROPA IT COMMITTEE:MOOS www.moosproject.be ETUC KRAKOW 08-10 July 2005

  19. UNI EUROPA IT COMMITTEE: • Active for 12 years • Yearly IT fora • Trends • Offshore outsourcing • MOOS: • 9 affiliates, 7 countries • 2 year project • Quality & quantity ETUC KRAKOW 08-10 July 2005

  20. OBJECTIVES MOOS • Understand why • Understand process mechanisms • Support UNI affiliates and members • Support and tools for activists and union officials • Develop strategies to anticipate on changes ETUC KRAKOW 08-10 July 2005

  21. MOOS TOOLS • Research reports • Website: info/tracker/documents • Offshore management handbook • Workshops and conferences • Develop common positions • Exchange best practices • Training seminars ETUC KRAKOW 08-10 July 2005

  22. QUESTIONS & THANK YOU ETUC KRAKOW 08-10 July 2005

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