Offshoring changes the recruitment landscape

IT development roles going offshore leave the UK with less technical roles to fill

IT roles in the UK become less technical

UK technology jobs are becoming less technical as emerging economies increasingly absorb development roles, according to the latest research.

The number of software development roles in the UK has dropped from 34 per cent of IT jobs to 29 per cent in the past year, says the report from ReThink Recruitment.
But while technical job opportunities drop, the highest-paying roles represent a larger share of the market than ever before.

“IT departments are shrinking but more jobs are being created in the line of business,” said Forrester Research senior analyst Euan Davis.

The changes are part of a natural progression, said ReThink Recruitment managing director Jon Butterfield.

Many helpdesk and call centre roles went offshore in about 2000, followed by legacy system maintenance work.

Indian software engineers are paid about £6,500 a year, compared with £32,000 in the UK. But as wages rise in emerging Asian economies, the jobs will move again.

“Higher-value application development roles are now going offshore but what happens in five years’ time when India’s 15 per cent wage inflation no longer makes it an attractive proposition?” said Butterfield.

Not all experiences of offshore outsourcing are positive.

Only three per cent of FTSE 100 managers have not had problems and 44 per cent say it is damaging their business, according to research commissioned by IT training and recruitment company FDM.

Cultural differences and lack of familiarity were cited as the main reasons affecting service.