This Press Release came from Atsco, who are the representatives of the major agencies. We will reply to it in the article following.
Debated at ATSCo October meeting
The trend for businesses to outsource IT operations offshore should be viewed by UK staffing companies and IT workers as an opportunity as much as a threat, according to a debate among top outsourcing specialists at the October meeting of the Association of Technology Staffing Companies (ATSCo).
The panel, consisting of Roland Trott of The Project Office, Alex Blues of Orbys Consulting, Sunhit Jilla of Technology Promotion and Kevin Barrow of Tarlo Lyons, argued that offshore outsourcing represented an opportunity for UK staffing companies to grow their business in overseas markets and gave UK IT workers the chance to work on major projects abroad.
Ann Swain, Chief Executive of ATSCo commented: “”IT workers in the UK have had a very difficult two years and outsourcing is rightly regarded as one of the main threats to their future prosperity. Many outsourcing projects still fail to meet business objectives and there is a danger that if work is shifted overseas only to be brought back, the UK‘s highly skilled technology workforce, which has been laboriously built up, will have been seriously eroded.””
Can‘t Get Quality Staff
According to the panel, companies that move IT operations overseas face similar problems recruiting the right quantity and quality of staff as in the UK. As a result, a large number of outsourcing projects fail to correlate with business expectations.
At present, most IT operations that are moved offshore are in application support and require fairly inexperienced personnel. Businesses can usually recruit these people locally, but finding mid to high tier staff to plan and manage a major project is more difficult.
We‘ll Send the Managers
UK candidates with project management or business analysis skills, for example, could be particularly well placed to market their services to offshore markets.
The panel said that supplying highly skilled UK staff to plan and manage overseas projects could become an important growth area in IT recruitment. Indian recruiters are already setting up in the UK to tap British IT talent.
They also pointed out that wage inflation and staff turnover in Indian outsourcing operations, for example, was between 30 and 50 per cent per year, representing an excellent opportunity for UK recruiters to set up in India as suppliers to major projects.
With increasing staff turnover recruiters have a role to play in quickly filling vacancies and high wage inflation means a higher charge for every placement.
Ann Swain said: “”Businesses will always look to cut costs and the UK technology sector has to accept the reality of outsourcing and look at ways to adapt.””
“”In any business you have to move with your client. For some staffing companies and IT workers that may mean having to adopt a more global outlook.””
We will give our views on these points in the article immediately after this called ‘The serious flaws in the Offshore-Outsourcing-is-good-for-you argument’
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