Offshore Edge

Dec 11, 2009 (LBO) - Sri Lankan, which is trying to attract more information technology outsource business, said a recent survey shows an increasing number of British small and medium enterprises (SMEs) are considering outsourcing work. One in five British SMEs are considering offshoring in 2010 as they seek to reduce labour costs to enable faster growth, according to the survey among 200 SME businesses in November 2009.

It was commissioned by the Sri Lanka Association of Software and Service Companies (Slasscom) a software and IT industry body.

Almost one quarter (22 percent) of UK small and medium enterprises are considering offshoring, while one in ten are very likely to offshore elements of their businesses in 2010, according to research conducted by ICM Research.

The report also found that 20 percent of businesses had increased their interest in offshoring as a direct result of the recession.

"Recession aside, the biggest driver behind UK SMEs’ interest in offshoring was the current cost of UK labour with 28 percent indicating this was an issue," a Slasscom statement said.

It said 13 percent also said they would use offshoring due to a lack of available UK skills.

"Interest in offshoring in the S