Investigating Outsourcing

Jan 19 2011   5:00AM GMT

The future for UK IT is not looking good because the government’s immigration cap is “pathetic”

KarlFl40 Profile: KarlFl40

Tags:
ICT
SSL

George Molyneaux, research director for Salary Services Limited, has this month provided some interesting commentary about the government’s immigration cap .

He commented on the government’s £40,000 minimum pay threshold for Intra Company Transfers staying in the UK over a year.

We know that a massive proportion of non-EU workers in the UK are on ICTs. We also know a massive propotion of these are IT workers from India.

Molyneaux says the minimum pay threshold is pathetic because the average IT developer in the UK gets more than £40,000. Some much more.

But rather than re-writing his concise point here is a cut of his commentary:

“[The £40,000 minimum] is a pathetic approach in that IT developers working in finance in the city are currently being offered salaries that average £56,298 with more senior grades going up to £70,188. The overall UK average being advertised for developers is £42,201. On top of this is the cost to employers of NI and other related costs. The pay figure set by the government needs to reflect the types of jobs being exploited and fix the level accordingly.”

He also said: “Government policy on immigration is meant to be curtailing immigration from non EU countries, however it will do little to stop the activity of predominantly Indian based companies using Inter Company Transfers (ICT’s) via the onshore-offshore process.”

He finishes off with a strong warning: “The future for the UK based IT industry is not looking good, and will remain so until this government puts some teeth into its immigration policy. The import of lower paid IT personnel will continue unabated.”

If you click on this link and read the summary at the bottom you will see Molyneaux’s comments.

After seeing some of the comments in the skills gap survey I have been promoting on this blog I would have to say his view on the future of the UK IT industry is shared by many.

1  Comment on this Post

 
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  • fubar_saunders
    I agree with him. But, apart from other fellow professionals, I wonder who else is listening?

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