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| UK cos offshored majority IT jobs to India in 6 mths |
| Press Trust of India / New Delhi Jul 21, 2009, 16:51 IST |
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In their attempt to cut costs amid the global downturn, two in every three UK-based firms have off-shored a portion of their IT functions in the last six months, with a large portion of it coming to India, a survey says.
According to a survey by an UK-based IT recruitment firm IT Job Board, almost two thirds (64 per cent) of the companies surveyed have off-shored a portion of their IT functions in the last six months.
Further, about 34 per cent of the IT professionals in the companies that participated in the survey said more than half of their IT department had already been shifted overseas and 79 per cent respondents said the work had been sent to India.
"Off-shoring is becoming an increasingly popular phenomenon, particularly as companies look to reduce cost during these difficult economic times.
"The UK is in midst of skills crisis, which is currently being undermined by the recession. If we are going to combat the long-term issues associated with IT skills, then businesses should be looking to train and utilise local talent, rather than off-shoring their IT activities," IT Job Board head (international marketing) Teresa Sperti said.
Companies also need to weigh up the cost benefit with the trade off in quality, before making the decision to off-shore, Sperti added. In their outlook for the next six months, exactly half (50 per cent) of IT professionals believed their companies would offshore work and 75 per cent felt the work would go to India, the survey revealed.
In terms of the roles being affected, 79 per cent thought software developer jobs were being outsourced, 71 per cent stated programmer roles, and 67 per cent advised IT support jobs were being impacted.
Besides, about 40 per cent IT professional surveyed believed the main issue with offshoring was lack of business knowledge and 83 per cent felt it was having a negative impact on the quality of their IT.
Interestingly, about 76 per cent of respondents felt that offshoring presented no long-term benefit to the economy, the survey added.
The IT Job Board works with the UK and Europe's leading businesses and IT recruitment agencies to offer live permanent and contract IT jobs.
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