Organisations that outsource technical work are losing graduate IT talent to its suppliers, according to an industry expert.
Iain Smith, research director for Diaz Research, which specialises in advising large businesses on IT employment issues, told Computer Weekly outsourcing and offshoring has "chopped career structures off at the knees".
Graduates are no longer populating the lower levels of jobs within organisations and are working for suppliers instead, he said.
Young IT talent has been driven to work for suppliers because they are attracted by the opportunities for technical work.
"IT-knowledgeable people don't want to work in an IT function where technical work is not getting done. The attractions are not good for younger people," said Smith.
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"In a few years' time how are outsourced areas going to find the kind of people with a background in IT that will help them manage demand and supply more effectively?" said Smith.
He warned that companies may now have to consider recruiting people from suppliers to "jump over the fence" and bring technology knowledge and delivery management experience with them into organisations.
"It's not clear to anyone how to do this effectively," he added.
A report by Diaz Research, giving advice on designing career structures for employees in IT has identified outsourcing as a key trend changing what is required by IT employees.
"Outsourcing and offshoring means that onshore work in some companies is restricted to business analysis, business relationship management, project management and vendor management," said the report.
"Obviously where companies completely outsource hands-on work, the entry levels of their career structure tend to disappear so the experienced-staff-only career structure is arriving," it said.