UK businesses have booted out hundreds of IT staff and offshored hundreds in last two year

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According to the survey of IT professionals I have been blogging about for the last week, the reality of offshoring's impact on the UK IT profession is clear.

The survey put together by reader, Matt, has revealed a great deal.

On Monday I blogged the results that showed that less than 20% of offshore IT workers in the UK have specialist skills, Tuesday revealed that 80% of IT professionals have had no real pay rise in five years and then wednesday showed results that revealed results that showed that Half of UK IT professionals have received no training in last five years.

Yesterday gave figures on the number of trainee IT graduates being taken on, and today I present the figures about the number of staff made redundant by businesses and the number of jobs sent offshore.

There is a strong correlation if you look at the graphs below.

The amount of businesses that have made over 100 IT workers redundant and offshored over 100 is similar.

The large slices of the pie charts are the number of businesses that have made between 0 and 10 IT staff redundant and offshored  between 0 and 10 IT jobs. Because we cannot differentiate between the businesses that have not offshored any IT jobs and those that have offshored between 1 and 10, I will ignore this stat.

But the number of businesses making over 100 IT workers redundant and offshoring over 100 are significant.

The survey asked: How many IT jobs has your organisation lost in the last 2 years?


And the survey said:

 

Jobs lost.jpg 

The survey asked: How many IT jobs has your organisation moved offshore in the last 2 years?


And the survey said:

jobs offshored.jpg

4 Comments

What companies and the government don't seem to appreciate is that they are putting their security in the hands of a third party (foreign country). Already in the bank I work for I can't hold a technical conversation with many of the "IT" management since the "knowledge" and consequently much of the security has gone off-shore.

As an aside to this - there has been increasing number of scams originating in India with the incidence of government corruption increasing all the time.

http://timesofindia.indiatimes.com/india/India-among-most-corrupt-countries-says-Advani/articleshow/7392515.cms

I know the same thing can happen here but questions of risk need to be factored into any cost-cutting calculations.

Here's an interesting perspective on the quality of Indian software engineers from the Economist:

Testing India's Graduates


I particularly liked this bit:

Himanshu and Varun Aggarwal are two of India’s formidable techies. They hold degrees from top institutions in Delhi and Massachusetts. But if the brothers exemplify the engineering gap, the firm they started together in 2007, Aspiring Minds, is busy debunking it.

According to the company, only 4.2% of India’s engineers are fit to work in a software product firm, and just 17.8% are employable by an IT services company, even with up to six months’ training. A larger share could cope in business-process outsourcing (call centres and the like). These findings are even gloomier than the 25% figure for employability that has been bandied about since 2005, when McKinsey released the results of a survey of international companies.

I think you would find a low percentage of 'fit to work' among recent IT graduates of any country. India just happens to have many more 'less experienced' IT workers because of the high growth. It can take years of on the job experience to make a good IT worker.

One of the bigger issues with Indian IT is that it has attracted far too many people with little aptitude because of the relatively high salaries. I have read it said in many Indian IT forums/blogs that the 20% competent workers carry the 80% that just turn up to work and bill for 12 hour days without achieving anything.

India will achieve a great IT industry one day but it will be because the talented 20% escape the poisoned environments in the big IT service companies and form their own businesses.

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This page contains a single entry by Karl Flinders published on January 28, 2011 10:05 AM.

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