EU population drop boon for Indian outsourcing
Europe’s looming demographic decline and aging could actually prove to be another step up for India’s outsourcing industry.
Difficulty in securing an adequate workforce is a problem foreseen in the near future. 2020 could usher in a period of development accompanied by a sharp drop in the ratio of working age people to total population what with the decline of birth dates and the rise of life expectancy. This development has generated enough concern that the European Union (EU) has stressed the need to review long term immigration policies.
“Between 2010 and 2030, at current immigration flows, the decline in the EU-25’s working age population will entail a fall in the number of employed people of some 20 million. Such developments will have a huge impact on overall economic growth, the functioning of the internal market and the competitiveness of EU enterprises.”
As a matter of fact, the business world’s bases of operations are now competing against each other to recruit the skilled, educated and English-speaking migrant sector. It would come as no surprise if it reaches a point where competing regions would be dangling migrant rights as incentive to work with and for them instead.
“The EU must also take account of the fact that the main world regions are already competing to attract migrants to meet the needs of the economies. This highlights the importance of ensuring that an EU economic migration policy delivers a secure legal status and a guaranteed set of rights to assist the integration of those who are admitted.”
This presents opportunities for Indians to go global and head to where the action is by providing services to the EU enterprises. This sits right well with India’s demographics which projects it to have an abundant workforce sitting at some 47 million. Factor in the competitive edge enjoyed in providing knowledge-driven services such as IT and R&D, and a healthy demand and supply relationship. Competition is expected to come from smaller countries such as Pakistan, Bangladesh, Indonesia, and Egypt.
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