IT Outsourcing Goes Global

By Andrew Bibby

Many information technology jobs have been shifted to lower-cost countries, and may soon migrate onwards to regions offering even cheaper labour

WashTech, the Seattle-based IT professionals' association affiliated to the Communications Workers of America, have been leading a campaign around the export of IT jobs to India and other low cost areas. US workers face increased job insecurity, lower wages and fewer benefits. A recent study says that up to 3.3 million white-collar jobs representing US$136 billion in wages, could shift from the US by 2015. In the UK the Communications Workers Union (CWU) has strongly criticised British Telecom for plans to transfer 2,700 jobs to India this year.

The CWU makes it clear they have no argument with Indian workers. Its main argument is that a company which derives the bulk of its profits from UK customers should have an obligation to support the British economy and British workers.

The Indian IT sector also has worries about the potential decline of job standards in India. Other countries are prepared to provide cheaper jobs so undermining their standards. The newly established IT Professionals Forums in India have chosen not to term themselves unions but have affiliated to Union Network International and seek to work together to maintain standards.

(World of Work. no. 47, June 2003)