Is the offshoring of IT destroying UK living standards?

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I receive so many well thought out comments on this blog that people spend time on I feel obliged to do them justice and feature them in individual blogs.

I recently wrote a blog about the prospect of the UK government offshoring thousands of IT jobs.


Below is a comment left on that blog by a reader. It is not for the faint hearted.


Comment below by BobF on what will happen if offshoring continues as it is going.


"Here is what is going to happen.


More and more companies, and the Government will offshore or onshore work for the cheapest price possible.


Profits, and the tax take will fall gradually over the years in the UK as more and more UK citizens are unable to find work, and onshored workers have their salaries paid in their home countries and due to ICT pay tax in their home countries too, not the UK.

 
The larger benefit bills will probably lead to a financial crisis or outright economic collapse within the UK (Already underway)


Profits for companies will rise in the countries where outsourcing takes place, as workers there become more affluent due to having work and jobs, wages will rise as competition increases.


Eventually these companies and the Government will find that UK workers are a "bargain" as they are as cheap or cheaper than the offshore staff (Cue articles about how talented, intelligent and generally wonderful UK staff are hence the move back to the UK, nothing to do with salaries, honestly!).


Repeat


Eventually we may end up with world wide parity of salaries and this stupidity will end, however the cost for developed Western economies workers will be grim, the next few decades will probably see great financial distress and general unhappiness for everyone in the UK, and a general collapse in living standards."

 

See the blog post BobF was commenting on and other comments to that blog here.

3 Comments

Ohio has banned offshore outsourcing for state work for exactly these reasons
http://www.information-age.com/channels/it-services/news/1281043/us-state-bans-it-offshoring.thtml

Its already lowering our standard of living. We are more likely to be living a quality of life like Indians in Mumbia rather than our parents in the UK in a few years time.

Yes it is. Offshoring and globalisation is destroying many skilled middle class jobs and therefore reducing UK living standards. Sadly there is little evidence of a backlash from the people affected by this 'race to the bottom'. Nothing will change until the IT workers finally stand up and take action.

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About this Entry

This page contains a single entry by Karl Flinders published on September 8, 2010 8:00 AM.

Is European IT outsourcing coming back online? was the previous entry in this blog.

Can governments really ban offshoring in this day and age? is the next entry in this blog.

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