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UK firms importing thousands of cheap techies from India

Evidence of "onshore offshoring"?

Tags: atsco, offshoring

By Andy McCue

Published: 21 November 2005 16:00 GMT

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.

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.

-- Ann Swain, CEO, ATSCo

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."

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