Offshore IT staff brought to UK have suddenly become a lot more expensive

I was sent the latest updated rules from the UK Boarder Agency about how much overseas workers doing particular roles should be paid if the are granted a visa.


It seems that many IT workers brought to the UK from offshore locations such as India will suddenly be a lot more expensive.


Forget the cap, which didn’t include the controversial Intra Company Transfer (ICT), these increases will make it less attractive for service providers to bring staff in from overseas.


Here are examples of the changes to the minimum salary overseas workers should get for certain roles.


IT or IS director minimum salary was £83,200 a year in 2010 and is now £92,628, which is about an 11% increase.


Minimum pay for a computer services manager leapt from £43,000 to £53,516


Software managers or programme managers have to get paid at least  £57,837 now compared to £40.500 last year.


Offshore Systems developers working onshore had to be paid at least £31,200 last year but will now earn £41,891. And Systems Auditor minimum pay moves from £34,600 to £47,880.


Analyst programmers had a minimum of £29,100 in 2010 and now a minimum of £35,719


The programmer minimum was £26,000 and is now £31,243, while the software engineer minimum jumped from £30,100 to £36,578 and the systems administrator minimum pay moved from £28,000 to £36,634.


Notice how many roles are moving above the government’s £40,000 minimum salary for offshore workers coming to the UK on ICTs for over a year. These increases will also make it less attractive to bring IT staff in for less than a year.


See the 2011 minimum salaries by occupation for yourself here.


The minimum pay is based on the Salary Services Limited data in its salary surveys. Perhaps they have started basing the minimums on SSL median pay level rather than the lower quartile.


Suppliers from India, who are often criticised for bringing in low cost staff to replace UK workers, say it is more expensive to do this. But critics say this is not the case.


Indian companies say they are currently trying to increase the proportion of workers local to customers. This could make this more urgent.