Government considers scrapping parity rule for IT outsourcers

While Cameron reassures Indian outsourcers that the UK is open to offshoring

David Cameron is in India telling outsourcing firms to expect more UK business

The government is considering scrapping a rule that guarantees workers at outsourcing firms similar working conditions to their equivalent co-workers in the public sector.

It may abolish an informal code that offers private sector workers on public sector contracts "no less favourable terms" to their in-house colleagues before IT was outsourced, according to news agency Reuters.

The code was intended to stop the formation of a two-tier workforce, where some staff enjoy much better pay and conditions than colleagues doing exactly the same jobs. The move is expected to cause uproar from trade unions.

However, not only is the government limiting the rights of UK outsourcing companies’ employees, it is now keen on offshoring more of its own IT contracts to foreign countries. David Cameron is in India today visiting IT outsourcing companies with the message that “the UK is open to outsourcing”.

“We are reviewing contracts and looking at what we pay for the services we have received. It is like any other business," Cameron said while visiting Indian outsourcer Infosys Technologies, according to the agency.

"In terms of being open to outsourcing... Britain is one of the most open and progressive countries," he added.