Danish companies are increasingly outsourcing work to Indians, industry confederation informs

No statistics are kept on the number of foreign workers employed by Danish companies, but according to the Confederation of Danish Industry the number of Indians being employed is on the rise after declining in the past few years.

Companies are outsourcing work to Indian employees because their level of education is generally high, their English skills are good and their wage demands are 20 to 40 percent lower than in Denmark.

Pharmaceutical company Novo Nordisk announced plans this week to expand its Indian workforce to 500 over the next five years from the current 100.

Tasks performed by the company range from administration to managing medical trials, but company CFO Jesper Brandgaard said expanding operations in India would not cost jobs here at home.

‘These jobs are a reflection of our projected growth,’ he said. ‘The labour it frees up in Denmark will be used to perform other tasks, and the money we save can be spent on developing new drugs.’

Ole Christensen, chief consultant at the Confederation of Danish Industry, said outsourcing was often a way for companies to find labour that was unavailable in Denmark.

‘If they didn’t outsource to India, they would have lost orders and the profits they carry with them. In the end, it could have cost Danish jobs.’

While Novo Nordisk will establish an affiliated office in India, others contract work to Indian firms.

Companies often employed staff in India to establish a market in the country, according to Christensen.

‘That’s part of another clear trend we see,’ he said. ‘Danish companies are becoming more aware of the opportunities that the country’s increasing standard of living gives.’