Rising offshoring undermines UK IT sector
Published on 20 May 2010
The recession took its toll on the IT recruitment industry in the UK; in 2008 and 2009, it was subjected to extremely difficult trading conditions, experiencing a 14.1% decline in value over this period.
The recession took its toll on the IT recruitment industry in the UK; in 2008 and 2009, it was subjected to extremely difficult trading conditions, experiencing a 14.1% decline in value over this period. In a new market assessment, IT recruitment report, market research provider Key Note discusses the possible impact that IT 'offshoring', and other trends, could have on the IT recruitment industry in the UK.
In order to reduce costs, many companies are taking part in, or at least considering, offshoring - a process that involves the relocation by a company of an aspect of its business to another country. The IT market in the UK is concerned that, if this trend was to become more widespread, it could lead to a situation where the UK no longer has the skills or the infrastructure to support technology business or large-scale technology departments.
According to a survey undertaken by the IT Job Board, 64% of the 300 companies questioned offshored some of their IT functions in the first half of 2009. The majority of organisations that had offshored in the first 6 months of 2009 had outsourced software development and programming, followed closely by administration and support roles. Senior and non-specialist roles appeared to be less affected by offshoring activities, largely owing to the fact that companies need to retain control of their IT function at a senior level of the business.
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