You are here: silicon.com > Services > Offshoring

Offshoring

Offshore outsourcing shrinks UK tech workforce

Are we facing a skills time bomb?

Tags: offshore

By Steve Ranger

Published: 4 September 2006 14:25 GMT

The success of offshore outsourcing is causing the number of UK-based tech staff to decline.

Research by analysts Ovum predicts a six per cent fall in the number of UK-based software and IT services staff by the end of 2008 - the equivalent of losing 5,000 onshore positions each year.

The bulk of the job reductions will be in programming, lower-level technical roles, call centres, helpdesks and back-office administration.

It is not clear where the next generation of highly-skilled, experienced programme and project managers will come from.

-- Phil Codling, senior analyst, Ovum

In contrast, within three years there will be 130,000 offshore workers delivering software and IT services for UK organisations - double the number currently, according to the research.

Ovum predicts the number of UK-based staff hired by offshore companies will continue to increase over the period - but not sufficiently to offset the overall decline in UK software and IT services (S/ITS) jobs.

But rather than fight this trend the analysts urge companies to focus on business-centric IT skills which will be critical to the success of both the IT sector and the wider UK economy.

Ovum senior analyst Phil Codling said in a statement: "We will see the UK-based S/ITS workforce shrink in size under the effect of offshoring."

He said there is "no point" trying to fight the decline in jobs that can be readily offshored or automated and added that companies should instead focus on developing more business-focused skills.

But he warned industry may not be well-prepared for this challenge as workforce development has slipped down the agenda for many IT organisations.

He said: "We face the prospect of a skills time-bomb in IT. It is not clear where the next generation of highly-skilled, experienced programme and project managers will come from."

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure

  • Jobs
Business Analysts

Exposure to BPO services, insurance or offshoring activity HCL IBS is a leading provider of Business Process Outsourcing services within the UK Life, ...

New Business Sales Manager for Utilities - Offshore Application

IDEALLY YOU WILL HAVE/BE THE FOLLOWING - Ideally, you will have had exposure to workforce automation control centres, outage management and GIS. JOB ...

Business Development Managers - IT Offshore/Outsourcing - UK Based

My client is a major provider of IT offshoring and outsourcing solutions in the UK and European space. Candidates must be savvy with (Indian) ...

Agenda Setters 2009
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.





Quick Sitemap Links: