Job Transfer-Harmless to Developed countries:

The switching of service and other sort of jobs to low-cost countries (Like China,India,Brazil and so on) has made a big issues in the past few years in developed countries. Europe and the US are more concerned that such developments could bring a big source of unemployment in their countries and region. McKinsey Global Institute's research suggests that the fears are exaggerated. The report says that the supply of young people in low-wage economies with good educational qualifications is likely to increase substantially in the next decade, demand for employing them in their own nations in jobs transferred from rich countries is likely to be muted. Many of them lack the work-related experience and aptitude that foreign companies are looking for. The study brings the distinction between graduation and thinking skills and says in the developing world this is overlooked. The report indicates that even though many manufacturing jobs have migrated from rich countries to emerging economies over the past 10 years, due to cost-cutting pressure, the service sector is unlikely to see the same trend.

The study was covered in eight different sectors including automotive, healthcare, insurance, information technology services, retailing, pharmaceuticals, banking and software. It also analysed specific types of service jobs within each of these sectors that could theoretically be performed "remotely" in low-cost countries on behalf of consumers and industrial customers in rich countries. The degree to which individual jobs can depends on how "customer- facing" current market place. In retailing only about 3 percent of all the jobs in developed regions lend themselves to being transferred to low-wage economies. But in engineering and finance because many of the jobs in these fields are done well away from contact with customers and the theoretical proportions are much higher, at 52 per cent and 31 per cent respectively. On the supply side, there is no doubt about the large number of potentially suitable candidates for service jobs done "remotely" in low-wage nations.

The study also says that the developing world has 33m "young professionals" with degrees and up to seven years' work experience in fields such as engineering, finance and information technology & the number compares with just 15m in the rich countries the institute studie. The number of young people with professional qualifications in emerging economies is expanding at 5.5 per cent a year five times the figure for the developed world. But the report scorns the idea that young people in this category in emerging economies can just walk into a job with a multinational employer. Many are judged unsuitable because they may be in parts of the country away from big airports.