Memorandum submitted by Kay Minder
1.0 My submission is in relation to the
Immigration Cap that you are investigating, in particular the
impact of Intra Company Transfers (ICTs) on those people working
in the Technology Sector.
1.1 I hope this email enables to you better understand
the concerns that so many of us within the IT sector have. Many
of us are fearful of the future because we are finding that companies
are using a method of resourcing that excludes us.
2.0 I currently work for a High Street Bank in their
IT department. Last year my employer made 900 of my colleagues
redundant, earlier this year it made a further 200 redundancies
and two weeks ago we were told that out of 3,000 staff in the
UK 1,000 would be made redundant. One of the factors that is driving
these redundancies is my company's new resourcing model which
makes extensive use of Indian 3RD party vendors, like Tata and
2.1 If a programme or project manager needs
a technical resource he will not place an advert in the internal
jobs board so other internal employees can apply for it nor will
he make an external hire, instead he will forward a job spec to
a resource manager in India who will contact an Indian IT supplier
and they will provide the resource and arrange his transfer to
2.2 My company is undergoing a massive technology
transformation, it is running several large scale programmes which
will cost several billion pounds.
My employer is not in a position to simply reduce
headcount but it is able to make so many of us redundant and not
hire any British workers because these India IT companies are
providing it with the man power it needs. I know one programme
which had a team of two UK employees and approximately 12-15 Indian
contractors working in London.
3.0 I am sure you know the statistics but I
simply cannot understand how in 2008, during a recession, when
companies were stopping IT spend, sacking contractors and permanent
employees the UK market could absorb 30,000 non EU IT workers
who were given the right to work here via the ICT route.
3.1 The basic fact is that its cheaper to operate
this way. The idea that the vast majority of these 30,000 employees
have unique skills is simply not true. The majority are undertaking
Business and System Analysis work and technical development work
which require skill sets which can be readily found here in the
UK from unemployed IT professionals.
3.2 What I find most appalling is the fact these
companies do not hire British workers. If they do claim to have
a large number of British workers these are actually people who
worked for a company that has outsourced its entire IT operation,
including its employees, to an Indian IT vendor. I've only met
handful (8-10) British nationals who were hired by an Tata or
Infysos. And I am excluding those people who gained British nationality
because they were working in the UK for an Indian IT vendor.
3.3 Surely if these companies wish to operate
in the UK, take advantage of its infrastructure and resources
there should be an obligation for these companies to give British
workers a chance?
3.4 This doesn't make sense to mewould
Honda be allowed to build a plant in the UK and staff it almost
exclusively with its existing workers from Japan? Why are these
Indian IT companies able to do the same? Aside from cheap labour
for their clients, what else are they offering? Jobs which would
have gone to UK citizens are now going to Indian nationals. Skills
which UK nationals would gain are not being lost.
3.5 In 2008 when they vendors were granted 30,000
ICT visas how many British workers did they hire? Did they advertise
in the UK for even a tenth of the roles they were given ICT visas?
They don't advertise for roles in the UK. I know because often
on our project after we've completed a resource profile we contact
our colleagues in India inform them of our needs and the next
day they forward details of several Indian candidates. They don't
bother to look if there is a UK national who can do they work.
3.6 With more and more companies using ICT workers
it has become harder and harder for young people to find work
in this sector. Why would a company bother to spend time and money
to train an IT graduate when they can use an Indian IT vendor
to do they work in the UK? IT graduates have an unemployment rate
of 17% compared to an average rate of 10%. Its because the vast
number of IT jobs are being taken up by people working in the
UK on ICT. The abuse of the ICT system and the offshoring of jobs
to places like Indiaso the work is done in Indiais
slowing killing the any opportunity of British workers to find
a career in the IT sector.
4.0 Long term the UK will simply loose the vast
majority of technical expertise. How can the UK labour force expect
to sustain any level of technical knowledge if:
(i) Graduates are unable to find IT work, and
(ii) those people who have been made redundant
or are keen to move jobs to increase their skillset are unable
to do so because the companies like, Marks and Spencer, HSBC,
BT, are using Indian IT vendors to provide technical resources
and these vendors have no interest in hiring British workers.
4.1 What makes any reasonable person believe
that in a recession with job cuts and with companies cutting pay
spending the IT sector in the UK could absorb 30,000 extra IT
professionals with no impact on existing workers here in the UK.
For example, on my company's internal jobsite
there are 64 jobs advertisedof these only 5 are in the
UK based, the rest are for jobs in India even though my employer
doesn't have any business there (it recently sold its Indian business
to another Bank). Its simply moving as many jobs to India.
5.0 A large company like my employer, which
is spending billions on new IT projects, is only advertising five
internal jobs, is making 1,000 of its UK IT employees redundant,
and not making any external hires. How can UK IT professionals
expect a career when companies, like my employer during a period
of high IT spending is sacking British workers and using Indian
IT vendors to provide it with the manpower they need. How can
any sane person claim UK workers are not affect by ICT workers?
5.1 Long term, 5-10 years from now,, where does
that leave the UK's general level of technical expertise? How
can anyone expect a career in this sector which Indian IT vendors,
who have become a large segment of the IT sector import their
5.2 Viewing the 2010 salary survey from Robert
Walters at page 32it becomes clear that pay in every sector
remained at the same level as 2009 or increased but those working
in IT have seen a decrease of approx 5-10% across all job types
6.0 I recognize that the ICT is a valuable way
for employees to gain international experience and for employers
to bring highly talented staff into the UK but it must not be
abused in this way. The fact 66% of all ICT are awarded to a small
group of companies, operating in the same sector, and the sheer
number shows that something is wrong. If we believe these companiesthat
they cannot find these skills in the UK (which I believe is false)
then we have an opportunity to train and develop British employees
so we will not need to depend on ICT. However, there should be
some mechanism to stop a company importing 4000 people each year.
6.1 I understand that employees in the UK via
ICT are paid a net salary directly ie that they don't pay any
taxthis is handled by their employer. I don't know if this
is legal or not but this is what I have been told.
I urge you to do something about this problem.