Outsourcing causes IT slump

AUSTRALIA has turned its back on the information technology industry through overseas outsourcing and a lack of support from employers and government would cost the nation dearly, according to the association representing IT professionals

AUSTRALIA has turned its back on the information technology industry through overseas outsourcing, and a lack of support from employers and government would cost the nation dearly, according to the association representing IT professionals.

Commenting on a downturn in the IT industry and a weak demand for computer-related university places, Association of Professional Engineers, Scientists and Managers (APESMA) chief executive John Vines said a lack of commitment by employers and both State and Federal Governments were responsible for the decline.

“This is inevitable in a cowboy labour market where everyone is left to make their own rules about how to treat hard working employees and where short term profit is the main priority,” he said.

“Under these circumstances things may go fine as long as a boom is on but it is no way to ensure a sustainable industry.”

Vines criticised Telstra and other major companies for outsourcing of IT related activities overseas, and said such outsourcing would worsen the problem.

“Employers need to take the low demand for information technology courses in Australian universities as a sign that better security and job conditions are needed to attract young people into the IT industry,” he said.

A recent survey found that 28 per cent of workers in the IT industry felt less secure in their jobs than they did 12 months ago, and 52 per cent felt unhappy in their jobs.

Conducted by SEEK, the survey also found that 70 per cent of Australian IT workers felt their management didn’t inspire trust.

The contractual nature of the IT industry played a critical role in influencing job satisfaction and security, according to SEEK CEO Paul Bassat.

“This begs the question as to why IT workers’ job related security has not rebounded in line with their industry,”he said.

“I suspect it is because approximately one quarter of IT positions are contractual, coupled with lingering effects from the dot.com crash.”

Vines also said that the contractual nature of the industry negatively affected employment prospects for current and aspiring IT professionals.

“The decline in interest amongst young people in pursuing careers in the IT industry is due to the reputation that the industry has developed as one which offers little employment security, limited career prospects and does not seem to be committed to the development of its employees,” he said.