Outsourcing: The Silent Job Killer in UK's Tech and Financial Sectors

While the UK media is saturated with stories of migrant crossings, a more insidious threat to the nation's economy is largely unreported: the massive outsourcing of jobs in the tech and financial services sectors to overseas companies.

This phenomenon is costing the UK billions of pounds in lost tax revenue and economic growth, stifling innovation and job creation in critical industries.

The Scale of the Problem

The numbers are staggering. In India alone, there are 5.4 million locals working in tech outsourcing companies, with at least the same number freelancing. This number grows by a million each year, and when factoring in other Asian and African countries, the total is likely tripled. These underpaid workers are unlikely to contribute to the UK tax base as citizens.

Estimates suggest that the UK loses over £100 billion annually to outsourcing in the tech sector alone. This figure is likely even higher when considering the financial services sector, given the number of banks and financial institutions outsourcing jobs to countries like India and Poland.

Corporate Involvement

Global companies like Microsoft, Fujitsu, and Infosys are heavily involved in UK government tech contracts. When awarded a contract, these companies often opt to have the work done by their teams in India, leading to job losses and lower wages in the UK.

Concerns Over Outsourcing

The financial services sector is similarly impacted, raising concerns about data security and financial stability. Key issues surrounding outsourcing include:

• Job & Tax Losses: Outsourcing leads to fewer jobs for tech workers in the UK, causing unnecessary unemployment and a decline in the domestic tech industry.
• Lower Wages: The presence of overseas labor can drive down wages in the UK tech sector.
• Quality Control: Concerns arise regarding quality and communication challenges with remote work across different time zones.
• Data Security: Outsourcing government contracts raises significant concerns about data protection and privacy.

The Bigger Picture

The trend of globalization and the movement of jobs to countries with lower labor costs demonstrates how oligarchs manipulate the procurement system. Short-sighted benefits, like lower costs for the government, have significant downsides for UK workers, hollowing out the economy.

It's crucial for politicians to engage in an open and honest discussion about outsourcing's impact in the tech sector. Policies must be considered to protect UK jobs and ensure fair competition. The future of the UK economy depends on shining a light on this hidden heist in the tech and financial services sectors.

Written by Neil Gentleman-Hobbs, smartR AI