UK IT will have to diversify to survive

15 May 2008

Comment: 1

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"There is a big difference between looking for overseas opportunities and actually finding work"

Computing reported last week that UK IT is in danger of losing skilled technology professionals overseas.

Research from recruitment specialist Computer People suggests almost two-thirds of IT workers are looking for employment opportunities outside the UK.

Further reading

Good luck and all that, but I would hazard a guess that there is a big difference between looking for overseas opportunities and actually finding work.

The first problem is that an increasing amount of nuts and bolts IT work is being offshored to Asia.

Maybe Indian and Chinese firms will poach the top UK talent to work on IT projects, in a similar way to dot com firms in turn-of-the millennium California?

Don’t get your hopes up. While best practice theory suggests firms should only outsource technology on a quality basis, most businesses also outsource work to keep prices down.

Prices are unlikely to be kept low if specialist UK workers are imported from high-paying western economies.

Cost-pressured firms across Europe and the US are also unlikely to be shelling out top dollar for global talent.

Information Week’s annual US IT salary survey shows the average wage for a technology professional has dropped for the first time since the dot com crash, from $74,000 (£37,000) in 2007 to $73,000 (£36,500).

Of course, some movement for highly-prized expertise is likely to occur. Fast-developing IT centres such as Dubai are expected to create some demand for IT workers.

The Computer People report also suggests staff with Cobol skills are best rewarded, with an average annual salary of £41,870.

Computer People’s managing director Nick Dettmar says the IT industry consists of professionals who know they have sought-after skills.

I am not so sure. Despite the promising pay rates, only the bravest of souls would become a Cobol specialist in today’s web-obsessed IT market.

Rather than specialising, UK IT professionals will need to be flexible because of the increasing desire for business to create on-demand solutions.

Such flexibility might mean working overseas. But it is more likely to include working across an ever-widening array of technology areas.

What do you think? Read Mark Samuels’ blog at:
http://knowledge.computing.co.uk

Reader comments

COBOL skills (not really in demand)

This report that COBOL skills can get better salaries is very untrue.

Basically people with COBOL skills have had these skills for years and comes with that better salaries.

It's not the skill that's getting the better salary but the fact that people with COBOL skills are not in demand and many of these employees have stayed with a particular company for years as they don't have the skills set to move on. But the other skills they may have gained directly important to a particular company may be the reason for a reasonable £40K.

So I said "COBOL is not in demand" which could be untrue if CWJobs had more than 8 jobs with the word 'COBOL' in the description within the London.

Theses types of statistics should include how many years experience a person needs against a skill set to get a salary. And you will soon see that COBOL is not really in demand or does a search on a job site prove this.

Posted by: Peter Research  15 May 2008

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