The number of foreign IT workers entering the UK has
increased by a factor of 10 over the past 10 years, driven by
demand from large public sector projects. Figures from the Home
Office show the number of visas issued for IT staff has increased
from 1,827 to 20,000 since 2000.
Some 85% of the visas this year were granted to Indian IT
workers. Software engineers and systems analysts head the list of
Indian visa applications. US IT workers, the next highest category,
received only 5% of the work permits.
The influx has raised concerns among recruitment consultants,
who fear the supply of overseas IT staff is damaging demand for
UK-based IT workers.
"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," said Ann Swain, chief executive of the
Association of Technology Staffing Companies (Atsco).
According to Payscale, a database of employee salary information
around the world, the average salary for a programmer in India is
currently £6,675 a year - roughly one-fifth of what a seasoned UK
programmer would earn.
The number of IT workers coming to the UK on intra-company
transfers has risen in recent years, as more Indian firms open
offices in the UK, Atsco said.
"My concern is what effect these intra-company transfers are
having on job creation in the UK and whether multinational
companies could do more to attract local talent," said Swain.
Atsco said the UK is a magnet for Indian IT professionals
looking for more highly-paid, highly-skilled work than is available
in India.
A decline in the number of graduates going in to IT in the UK is
likely to increase the UK's dependence on foreign IT skills, it
said.
However, a survey by the Association of Chambers of Commerce of
India has found that wage inflation in Indian IT services is
running at 36% a year. The survey also suggested that India's pool
of IT workers could run dry by 2007.