Legal Technology Journal

Nearly three times as many foreign IT workers from outside the European Union entered the UK last year than during the dot com boom in spite of the economic downturn.

Data obtained under the Freedom of Information Act by the Association of Professional Staffing Companies (APSCo) reveals that 35,430 UK work permits were issued to workers from outside of the EU in 2008 compared with 12,726 in 2000, at the peak of the dot com boom.

While the figure has dropped from a high point of 38,450 in 2007 it comes, says APSCo, at a time when thousands of UK IT workers are losing their jobs and in spite of tougher new immigration rules introduced in 2008.

Over 80% of non-EU IT workers coming to the UK are classed as intra-company transfers, whereby companies relocate IT staff between offices in different countries.

Chief executive of APSCo Ann Swain said: “There is currently no requirement for companies to advertise vacancies in the UK before bringing workers in on intra-company transfers.

“In view of the significant increase in unemployment in the IT sector in the UK the Government should review this rule and consider making companies tap the UK labour market first.”

Most of the foreign IT workers are highly skilled software engineers and systems analysts, with the vast majority (29,400) coming from India.
APSCo blames offshoring IT jobs to low cost overseas locations – likely to accelerate during the downturn as organisations look to cut IT budgets – for eroding the IT skills base in the UK, making it easier to justify importing IT skills from abroad.

Swain said: “Offshoring has eaten away at the bottom rungs of the skills ladder, making it much harder to get the experience needed for the mid-level jobs which foreign companies are bringing workers into the UK to fill.”

 Number of work visa approvals in IT by top 10 countries