Offshoring may put pressure on wages, costs: WTO

  • 18/07/2008

  • Economic Times (New Delhi)

Explosive growth in offshoring may put pressure on wages and other costs in countries such as India, a World Trade Organization (WTO) report has said. "Offshoring is not without its risks and costs to financial institutions...explosive growth in offshoring may put pressure on wages and other costs in countries such as India," the recently released WTO report on trade in a globalised world said. According to the WTO, closely connected to rising labour costs are high turnover rates, which can affect the quality of offshore operations and these issues can halt the further expansion of offshoring.