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Union official voices concern over public sector IT jobs

Kablenet.com

Published: 07 Nov 2005 09:40 GMT

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Graham Steel, senior national officer commercial sector for the Public and Commercial Services Union (PCS), said that automation and outsourcing are combining to create an "hourglass economy". There is likely to be a slight increase in the number of low skilled and highly skilled jobs, but those in the middle will have fewer opportunities.

He made the prediction in the PCS Commercial Break  magazine, partly in response to the growth of outsourcing public sector processes. Some commentators think that up to a further 18 percent of the public sector could be outsourced in the next five years.

"Most of those in IT work at present are probably in the middling-type jobs," Steel told Government Computing News on 4 November, 2005. "They involve a combination of communication skills with fairly routine processing work on behalf of the customer.

"Automation of the work will take it away from people. Often the processing can be completely automated, and if it can't the basic processing function can be done by someone on a much lower wage in another country."

He said the people most likely to be affected are those who have knowledge of the IT systems they work with, but do not have a qualification or general knowledge of IT.

"The bulk of people doing IT work are in this category," he said.

Steel cited India and China as countries where companies could transfer such work, although he said there is considerable opposition to doing this for public sector jobs. The public is against it, the government is not encouraging it, and there are concerns over transferring sensitive data on individuals to operations overseas.

In the magazine article he said the PCS has to help raise the levels of skills among its members.

"There will be a demand for more design, management, coaching, communication and IT skills," he wrote. "Employers will have to invest more in skills development to recruit and retain people."

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Software development for instance can be off shored with a perceived reduction in development costs but the resulting code is rarely of good quality and there is much greater expense in reworking and support over the life of software developed in this way. As a consultant who has to deal with off shoring on daily basis I very often see no savings at all over the lifetime of a software product, and in some cases actually see projects costing a fortune to rework.

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Offshoring behind UK tech-labour divide