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~SMEs seeking lower-cost labour for growth~

Almost one quarter (22 percent) of UK small and medium enterprises (SMEs) 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 in November on behalf of SLASSCOM, the development body for Sri Lankan outsourcing.

The report, entitled ‘The SME Offshoring Readiness Index’ 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. 13 percent also said they would use offshoring due to a lack of available UK skills.

The survey also found that some SMEs would use offshoring to focus on core competences (16 percent) and to extend service hours (14 percent). These positive signs were...

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