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IT jobs 'will be taken offshore' in light of spending cuts
IT contractors have been warned that public spending cuts will push many IT roles offshore.
Public bodies in the UK could be facing budget cuts of between 25 and 40 per cent, according to Ovum.
When faced with the need to cut costs so drastically, public bodies will be left with no choice but to choose the cheapest options for their IT services - which will invariably be specialist outsourcing companies from abroad.
"The government and suppliers still have political barriers and legal hurdles to deal with: the voting public is unlikely to approve of public sector jobs going offshore," said Ovum senior Analyst Sarah Burnett.
Ms Burnett goes on to add that new legislation means that the protection of benefits, such as public sector pensions, will also have to be considered before offshoring begins in earnest.
The Recruitment & Employment Confederation recently revealed that temporary workers have been the first casualty of reduced public spending, with 120,000 posts being cut in the last three months.
Public bodies in the UK could be facing budget cuts of between 25 and 40 per cent, according to Ovum.
When faced with the need to cut costs so drastically, public bodies will be left with no choice but to choose the cheapest options for their IT services - which will invariably be specialist outsourcing companies from abroad.
"The government and suppliers still have political barriers and legal hurdles to deal with: the voting public is unlikely to approve of public sector jobs going offshore," said Ovum senior Analyst Sarah Burnett.
Ms Burnett goes on to add that new legislation means that the protection of benefits, such as public sector pensions, will also have to be considered before offshoring begins in earnest.
The Recruitment & Employment Confederation recently revealed that temporary workers have been the first casualty of reduced public spending, with 120,000 posts being cut in the last three months.
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