By Andy McCue, 21 November 2005 16:00
NEWS
UK organisations have been accused of exploiting the work permit system to import cheap IT staff from overseas.
More than 21,000 foreign techies - the majority from India - were given work permits in the last 12 months to fill IT positions in the UK, according to new figures released by the Home Office.
Almost 85 per cent of the 21,500 non-European IT workers given visas to enter the UK between June 2004 and June 2005 came from India, followed by the US, Australia, South Africa and Canada.
The Home Office also revealed that the number of IT work permits granted has almost doubled in the past five years from 12,726 in 2000.
The Association of Technology Staffing Companies (ATSCo) said the figures, which it obtained under the Freedom of Information Act from Home Office body Work Permits UK, are the first evidence of the US phenomenon of "onshore offshoring".
Ann Swain, CEO of ATSCo, said in a statement: "Skills shortages continue to be a major pull factor in bringing foreign IT workers to the UK, but the concern is that some organisations may be taking advantage of the visa system to import cheap labour from abroad." Software programmers in India can expect to earn around $11,500 per year, almost a fifth of what a seasoned UK programmer would be paid.ATSCo claims there is a large rise in the number of Indian IT workers coming into the UK on intra-company transfers but warns that UK organisations could become too dependent on foreign staff at the expense of home-grown talent.
Swain said: "Is it any wonder so few students are choosing IT when entry-level jobs are being sent offshore and workers are being brought in from overseas for managerial positions."
Comments
There are 9 comments. Join the discussion
1. Experienced IT guy
Skills Shortage excuse - companies claim they cannot get the staff they want, but only because they are no longer prepared to pay for them.
So when they can't get cheap UK staff, they get a visa to import cheap overseas resources instead. Which is just what this article indicates.
This is so obviously bad in the long term, but that isn't the view taken by companies nor our Government - they even promote trade with India at the expense of our own country. What is correct about that?
2. John Smith
Interesting article, however this has been going on a long time - not only in the UK, but also in most European countries. Many of the large companies that offer offshoring capabilities will send in the exceptionally knowledgeable employees to secure the deal, then they will replace them with graduates, or employees of limited experience, thus ensuring a maximum profit margin.
Offshore companies are definitely no cheaper than using European based contractors, in fact, some actually employ contractors, via agencies, at low rates. Also, on several occassions this year, I have received contracts to clear up the mess created by some of the offshore companies who have failed to achieve set targets.
3. anonymous
This is a masive scam - perpetrated with the collusion of the Labour Government. Within weeks of instituting IR35, the government announced that it was making it easier to fast-track work permits for foreign IT skills. So British IT entrepreneurs were taxed at punitive rates for providing IT services to clients, (competing with big IT brands) and in the exactly same month it became easier for the same big IT brands to import cheap IT workers on slave-rates.
Blow the whistle on them!
4. Frank Smith
Seems to be the same in Accounting as well.
All the Auditors sent in to our company here are non-english
Mostly Indian and Polish.
Makes for some hard work re understanding. (This from a bank)
5. anonymous
What goes around comes around.
While UK companies and India wreck the employment market in UK PLC, and while the government condones it, the cost of keeping people out of work will escalate,l which in turn will make taxes go up to pay for them, which will mean higher wage demands from UK workers, which will mean the employer looks overseas for its labour, which puts those workers on the dole
Need I go on... Eventually, the only place left to work at will be the jobcentre, and they will be minimum wage, take it or leave it, because "just look at your own client list as long as your arm, they will have your job tomorrow."
And eventually, even the Jobcentres will be outsourced, because the jobs themselves will be advertised in India.
Might as well outsource the government while we are at it..
Please Mr/Mrs Indian, may I have my dole money please.
6. Sarah
Why am I not surprised by this?
In the US, Canada and Australia (as well, I am sure, as other countries) in order to get a visa you virtually have to prove that no one in that country can meet the requirement.
Thanks Tony Blair and co. for screwing us all! What do you care, your all right jack!
7. Rich
Unfortunately this not a shocking revelation .
Companies have been doing this for yeares not just is computing. When the skills shortage argument no longer holds valid(which current evidence would surget does not) companies will then claim "We need to do this is order to remain competitive".
This is nothing really you can do about it. I guess, if your working with a guy brought over from Indian tell him how much you earn so they have a go at the company. After all he is being ripped off aswell
8. Parveen Kumar.
Well, the headline is actually inappropriate. It labels Indian tech pros as "just cheap labour", whereas in actual fact they are professionals who know the job BETTER and can get it done more efficiently without winging about MORE training, better TEA/COFEE facilites and other issues irrelevant to the business needs. So wake up people, its a competitive market and unless you work harder to earn your bread, you will soon be out sowing and growing some. Actually farming WAS a primary profession in developing India, now it is replaced by Information Technology and many other fields of Science in DEVELOPED India.
9. Simona
I am a bit confused... Is it about outsourcing? because in this case they are right and the wages are smaller for foreign people working in the UK, but living in their countries. Otherwise, the cost of living is greater in the UK than in their country and therefore the wages should vary in the same range for everyone... I don't see how they could ask for smaller salaries if they have the same costs to cover.