Indian software and services companies are urging the UK
government to relax work permit restrictions for overseas IT staff,
despite concerns the UK has barely begun to recover from the
biggest slump in IT employment for more than a
decade.
The India Business Group, which represents 100 Indian IT firms in
the UK, hopes to convince officials that British businesses will
not survive international competition unless they are able to take
advantage of low-cost IT services in India.
Thames Water, Thomas Cook and Oracle are among the firms which have
announced offshore IT contracts in recent months, but the trend has
alarmed trade unions and contractors' groups which fear it will
lead to job losses in the UK. Between 20,000 and 25,000 IT jobs
will transfer to India over the next three years, according to
analyst firm Ovum Holway. Some US states are introducing laws to
restrict the use of overseas IT workers.
The IBG plans to highlight to the Home Office the economic case for
outsourcing. The government last month granted the group a place on
the industry panel that advises the government on work permit
policy, despite opposition from existing IT industry members.
Speaking on behalf of IBG, Rajeev Sawhney, executive vice-president
of HCL Technologies, one of the largest Indian software and
services companies, said it was in the UK's long-term economic
interest to relax restrictions on work permits.
"If you need someone to do scoping work for two months, by the time
you have got their work permit, got it stamped at the Indian High
Commission and gone through medical tests, you have lost a month
and a half," he said.
Manpreet Vohra, economic counsellor at the Indian High Commission,
which launched the IBG, said offshore outsourcing would eventually
help the UK economy. "A few individuals fear job losses. But if
with those job losses companies actually manage to stay competitive
and profitable, 1,000 jobs might be saved in the future," he
said.
The IBG also claimed that offshore outsourcing could create new
opportunities for UK contractors, provided they are willing to form
dedicated contracting companies that could provide Indian firms
with local expertise.
But the IT directors' forum Elite said it was sceptical about the
need to relax work permits. David Rippon, former IT director at
Land Securities, said Indian firms should hire more local people,
given the current difficulties in the jobs market.
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