Offshoring 'bad for IT pay in UK'

by Sanjay Jha | May 26, 2008 at 02:51 am

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Outsourcing of IT services from Britian to India has had its toll on the annual salaries of the lowest end of the Industry. There has not been any increment in last five years. According to a latest report, The offshoring trend is threatening to deprive the UK IT industry of entry-level staff with the potential, one day, to become managers.

The pay and prospects of junior IT support staff in the UK have stagnated as services have been relocated to India, research has suggested.
Annual salaries at the lowest end of the industry have not risen in five years, according to the Association of Technology Staffing Companies (ATSCO).
The "offshoring" of low-skilled jobs to cheaper locations in Asia has deterred people from entering the industry.
This risked leaving a shortage of candidates for UK managerial positions.
Less experience
According to ATSCO's annual skills survey, which compares salaries across more than 75% of the industry, average pay for low-skilled front-line staff has stalled at £18,000 for five years.
By contrast, pay for managers has risen by more than 20% over the period.
The offshoring trend is threatening to deprive the UK IT industry of entry-level staff with the potential, one day, to become managers, the report said.