Indian suppliers group says that visa relaxation will not woo
Indian contractors, while British IT contractors threaten legal
action on IR35.
Bill Goodwin
India's software and IT services companies will not use
Britain's proposed relaxation of immigration restrictions to send
more IT contractors to the UK, India's leading IT trade body said
last week.
Atul Nishar, chairman of the National Association of Software
and Service Companies, which represents around 600 software and
services companies, said that Indian suppliers are more interested
in high-value offshore development than providing British firms
with short-term contractors.
The warning comes amid renewed claims that the Government's IR35
tax reforms will work against plans by the Overseas Labour Service
(OLS) to speed up visa applications for overseas IT workers by
encouraging British contractors to seek work overseas.
"Nobody should believe Indian companies are out to ship people
to the UK. That's not our priority at all," said Nishar.
It makes financial sense for Indian suppliers to use their
skills to develop software for British companies from India, using
satellite and e-mail links to stay in touch with their clients,
said Nishar.
India is keen to increase its software exports to the UK and
Europe, which accoun-ted for around 22% of $3.8bn overseas IT
contracts last year, well behind the US which accounts for 60%, he
said.
Large UK companies, such as Sainsbury's have turned to Indian
companies to outsource development work after successfully
outsourcing their Y2K work to India.
Nishar said that plans by the OLS to make it easier for Indian
IT teams to work alongside UK clients without having to wait months
for visas will encourage more offshore development.
This would ease the fears of some British firms that they will
lose control over projects unless they have the contractor on-site,
he said.
Nishar urged the UK government to crack down on a few
unscrupulous firms that are illegally sending over staff to the UK,
often on subsistence wages, to act as freelance contractors.
Computer Weekly has uncovered incidents of overseas
software companies illegally sending contractors to the UK on
training visas, or on wages which fall below the legal minimum.
"Its not only Indian companies that do such a thing. The
Government should come down strongly against any company that is
doing something wrong," said Nishar.
He urged the UK to adopt the US approach of vetting companies
before agreeing to fast track their staff with entry visas.