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November 5, 2003updated 04 Apr 2022 11:44am

Regulation is no defence against offshore rivals

UK IT salaries will continue to fall in coming years because of competition from offshore IT services companies.

By CBR Staff Writer

However, tighter government and market regulations are not the answers, according to analysts, despite the threat posed by the flow of business to lower cost countries such as India and China, at a time when more than 30% of the UK’s independent computing contractors are unemployed.

Part of the problem is the hugely inflated salaries paid in the UK IT industry during the past 10 years, prompting companies to look for cheaper alternatives in places like India and China, where demand will see salary levels in those places rise as the more skilled staff demand closer parity with other countries.

The answer in the UK, according to experts, is for IT specialists to become the low-cost, high-quality suppliers that are currently being sought worldwide.

This article was based on material originally published by ComputerWire.

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