§ Mrs. Curtis-ThomasTo ask the Secretary of State for Trade and Industry if she will make a statement on the(a) migration of information technology work overseas and (b) steps her Department is taking to reverse the trend towards migration of IT work overseas. [171399]
§ Ms HewittThe Government are well aware of concerns about the effects of offshoring, including on employment in the IT sector. But we know from consultation with key stakeholders that there is a broad consensus in the UK that trade protectionism is not the right response. Instead, we must do all we can to ensure that those who are affected by decisions to offshore work are found alternative work as quickly as possible. We also need to ensure that the UK remains competitive and an attractive place in which other countries wish to do business and it is important to note that the UK remains the lead country in terms of inward investment into the EU. We are also working closely with the RDAs and the Learning and Skills Councils to ensure that the UK is equipped to meet these challenges.
In this globalised world, companies require the flexibility to take the required steps to remain internationally competitive. Location is ultimately a business decision for companies, and the Government cannot prohibit moves offshore. However the Government continue to create the macro-economic environment to encourage business location and growth within the UK.
Finally, offshoring is not a one-way process. Successful Indian IT companies such as Tata, Wipro and Infosys, have invested in the UK and have created and expanded employment here.