Is offshoring reducing IT pay in London finance sector?

The recession and increased offshoring to cut costs are both affecting IT pay levels.

A report from recruitment consultancy Robert Walters has revealed a drop in pay between 2009 and 2010 for IT professionals in London.

The report I have seen is for IT professionals in the Banking & Financial Services sector and the Commerce & industry vertical. Both, for the London region, show similar declines in pay levels.

Here are the findings for the Banking & Financial Services sector:

 

                                                Permanent salary per annum £s                         

                                                2009                 2010                              

Head of IT/CTO/CIO                    £120-180k         £110-170k

Head of Product Line IT              £120-180k         £100-150k

Head of Infrastructure                 £100-135k         £100-130k

Development manager                £110-140k         £100-120k

Programme manager                  £100-130K         £100-120K

Developer/Quant Developer         £80-130k           £80-120k

Head of Application support        £85-125k           £80-115k

Senior Technical Architect          £80-110k           £80-100k

QA Manager                              £75-100k           £70-90k

Project Manager                        £75-110k           £65-100k

Senior Java Developer                 £65-95k             £65-95k

Business Analyst                       £70-90k             £65-85k

Excel/VBA Front office               £70-90k             £60-80k

Junior Java Developer                 £50-65              £45-60k

Business Analyst (junior)            £45-65              £40-60k

 

Contracts in the sector saw their daily rates drop also. Lloyds banking group last year told its IT contractors it was cutting pay by 15%.

 

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Those rates still look pretty good to those of us outside the M25! Round here, a junior developer can expect to earn £25-35K, an experienced developer £35-45K. But these salaries are likely to drop as outsourcing, recession and public sector spending cuts all have take effect.

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Well capital will flow to the lowest provider of labour.

I do wonder why the government are doing nothing to make the employment of a person in the UK competitive, and hence making the employment of offshore resource less attractive.

Of course in actual fact these IT jobs are not "redundant" they are still there they are just there in another country. Lloyds Bank of course are partly owned by the government, as an owner (and an ex-employee incidently) by being a citizen I do not recall being asked about it.

One last point, do companies that do this really post huge profit rises? How much would be saved by replacing the board of directors with Indian directors and moving the HQ to a lower tax country - there you go that would save squillions.

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