Outsourcing hitting UK IT professionals salaries hard: Report

May 26th, 2008 - 4:39 pm ICT by admin  

London, May 26 (ANI): A new report suggests that the wages of workers in the UK have declined due to the outsourcing of computer contracts to other countries.

The Association of Technology Staffing Companies (ATSC) said in its report that the wages of new information technology (IT) support staff have remained stuck at 18,000 pounds over the past five years.

The report also says that longer serving employees have only seen their pay increase by 0.8 per cent a year.

However, those at the post of manager have got a pay-hike of about 20 per cent over the last five years, and presently draw an average of 45,000 pounds.

The report also cautioned that the outsourcing of low skilled jobs to other countries was acting as a disincentive for UK citizens to study IT, and thus might worsen skill shortages in the industry.

“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 Daily Express quoted Ann Swain, chief executive of ATSC, as saying.

“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,” Swain added.

Pointing out that Indian salaries were increasing at more than 14 per cent, she said that the turning point would arise when they would come close to the salaries of UK professionals.

“As the gap converges, it will make less and less economic sense to outsource support functions to India,” she said. (ANI)

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