Outsourcing boosts economy: British official

Sydney: A top British industry official Sunday said developed countries should not worry over job losses to low-wage countries like India and China as off-shoring forces an economy upmarket to where the big rewards are.

Sir Digby Jones, director general of the Chamber of British Industry, said Britain had injected more than $27 billion into its economy since 2000 by sending unskilled jobs offshore to places like India and China.

Jones told Australian TV network Channel Nine that the British workforce had retrained and was now better skilled. This transformation had resulted in a more flexible labour market and lower unemployment.

"You've got somebody doing the work that is a commodity, send it away ... have the courage, don't protect the market, let it go," Jones said.

"Skill the person into value-added work, they earn more money so they stimulate the economy, they spend in the high street or they pay down their credit card debt."

He added that profitable companies paid more tax and that money could be spent on hospitals and schools.