To ask the Secretary of State for Trade and Industry what analysis he has undertaken of the potential impact of outsourcing of business functions abroad on (a) employment trends in the UK and (b) economic growth in the period to 2011; and if he will make a statement. (120868)

[holding answer 20 February 2007]: Current evidence suggests that while there has been some outsourcing of business functions abroad, this has had little significant impact on UK employment or growth. From 2001 to 2005 UK employment grew fastest in exactly the services, IT and call centres, that were regarded as most likely to be outsourced overseas, although a survey of the UK IT industry last year suggested there may be a small fall in its employment in the UK over the next few years. Therefore, while outsourcing of business functions abroad is generally expected to increase in the future, it is not clear that this will have a significant impact on UK employment or growth.

I do not propose to make any further statement.