Immigration changes to hit IT skills

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The news that the government is set to accept proposals to tighten immigration requirements for those outside the UK has prompted speculation over the impact on IT skills and offshoring.

Prompted by the plan UK borders agency’s migration advisory committee UK borders agency’s migration advisory committee (MAC) to test non-European Union (EU) immigrant potential according to earnings and qualifications criteria, experts are warning the IT industry could be hit hard.

The MAC report also removed IT workers from the list of "shortages occupations".

Clive Longbottom, research director for IT analyst firm Quocirca, told IT PRO that, if passed, the proposals are likely to be felt most keenly by those Indian outsourcers making inroads into European markets.

“End-user organisations are unlikely to feel the impact of these proposals, if passed, because there should be sufficient skills available from across the EU in the short-term,” he said.

“The problems will be felt by the likes of the Indian outsourcers who, having had success through offering labour arbitrage at a more competitive price than European counterparts, have more recently been bringing Indian business specialists over to the UK for project work.”

Dependent on whether the new proposals exclude short-term work placements, Longbottom observed that any increased cost - in hiring at a higher price point in Europe or by sourcing the necessary specialist IT skills internally - would ultimately be met by the end user.

“The words, 'nose, face and cut off' also come to mind in terms of the UK IT skills shortage - in the long term there are just not enough young people in university studying IT to make up any shortfall,” he added.

The MAC proposals also follow consultation with UK IT industry groups, including e-Skills UK, which concluded that IT should be left off a list being compiled of occupational skills in short local supply.

As a result, the proposals could make it harder for IT workers from beyond the EU to pass earnings and qualifications tests to enter the UK and fill the widening skills gap.

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