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OUTSOURCING WORK ABROAD CUTS UK PAY

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Outsourcing abroad 'hitting IT pay in UK'

Monday May 26,2008

The outsourcing of computer contracts to other countries has cut the wages of workers in the UK, according to a new report.

The wages of new information technology (IT) support staff have remained stuck at £18,000 over the past five years, while longer serving employees have only seen their pay increase by 0.8% a year, said the Association of Technology Staffing Companies (ATSC).

But salaries for managers have increased by 20% over the last five years to an average of £45,000, the research found.

Low skilled jobs leaving the UK acted as a disincentive for people in the UK to study IT, which could worsen skill shortages in the industry, the report warned.

Ann Swain, chief executive of ATSC, said: "The outsourcing of entry-level IT jobs has meant fewer graduate-level jobs are available in the UK. It is like removing the bottom rung from the career ladder."

"The shortage now is of candidates with a few years' experience looking for second and third jobs. But how do you get that experience if entry-level jobs are being sent offshore?

"Concerns over quality of service and data security in outsourced operations are constantly being voiced. However, these concerns haven't yet prompted organisations to bring their IT support roles back onshore en masse."

The report predicted that a turning point would arise when Indian salaries, currently increasing at more than 14%, came close to those of UK professionals.

"As the gap converges, it will make less and less economic sense to outsource support functions to India," added Ms Swain.


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VOTE WITH YOUR FEET

27.05.08, 3:01am

I have, for years, refused to do business with companies who outsource British jobs to an overseas location. This has included changing all my insurances. My family has acted similarly. The British have never understood the power of the collective consumer, that is why we are ripped off for most products in the UK.

• Posted by: LafyorSocksoff1Report Comment

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THE PLUNDERING OF OUR WAY OF LIFE

26.05.08, 8:53pm

These politicians need to be totally held to account for the nonsense that has been created by the outsourcing of our work whilst they explot the rest of the world is appalling ludricacy.....total aniialation of the British economy through this unelected prime minister and ministerial team....let them all fall on their own swords and see what the outcome of all this pludering will lead too within this country.....

Destruction to the level of no return....I just feel sorry for the Conservative Government that ggets in to try and sort all of it out! The people are with you though and don't let this prospect frighten you David and the team come out sshining and lead us all to a sane society.

• Posted by: RealIstic08Report Comment

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THE PLUDERING OF OUR WAY OF LIFE

26.05.08, 8:52pm

These politicians need to be totally held to account for the nonsense that has been created by the outsourcing of our work whilst they explot the rest of the world is appalling ludricacy.....total aniialation of the British economy through this unelected prime minister and ministerial team....let them all fall on their own swords and see what the outcome of all this pludering will lead too within this country.....

Destruction to the level of no return....I just feel sorry for the Conservative Government that ggets in to try and sort all of it out! The people are with you though and don't let this prospect frighten you David and the team come out sshining and lead us all to a sane society.

• Posted by: RealIstic08Report Comment

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YES, I'VE GOT THE WRONG, AND LONGEST EMAIL ADDRESS IN THE WORLD.....

26.05.08, 7:15pm

because the numpty out in New Delhi (or wherever it was), could hardly speak English, and couldn't spell to boot. Then got annoyed with me, because I couldn't understand her.

I could change it but to be honest, at 60 pence a minute only to be kept hanging on the phone for what seems an eternity, and then having to go through the enitre process again....I just can't be bothered.

Whenever one hears a company is "outsourcing abroad" and they give the standard excuse of "restructuring" 0r "streamlining", it means one thing..... a loss of more British jobs to cheap foreign labour, and a hefty bottom line for the bean counters.

• Posted by: Veltro205Report Comment

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AND WHAT ABOUT THE APPALLING DROP IN QUALITY OF SERVICE?

26.05.08, 12:44pm


Outsourcing of IT contracts goes hand in hand with outsourcing of call centres.

I am fed up with speaking to foreign call centre staff who simply do not understand what I am saying to them. If I depart even slightly from the set script they haven't got a clue and have to call a supervisor. They have no empathy with the message I try to get across to them and in the main they are just a bunch of incompetent, undertrained jobsworths.

I now make it a policy to refuse to use compaies who do not offer customer contact facilities based in Great Britan with real English speaking "agents".

If we all did likewise we could force employers to bring this work back to Britain.


• Posted by: Peter_PanReport Comment

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