Government considers scrapping parity rule for IT outsourcers

Dawinderpal Sahota, Computing, Thursday 29 July 2010 at 10:17:00

While Cameron reassures Indian outsourcers that the UK is open to offshoring

The government is considering scrapping a rule that guarantees workers at
outsourcing firms similar working conditions to their equivalent co-workers in
the public sector.

It may abolish an informal code that offers private sector workers on public
sector contracts "no less favourable terms" to their in-house colleagues before
IT was outsourced, according to news agency
Reuters.

The code was intended to stop the formation of a two-tier workforce, where
some staff enjoy much better pay and conditions than colleagues doing exactly
the same jobs. The move is expected to cause uproar from trade unions.

However, not only is the government limiting the rights of UK outsourcing
companies? employees, it is now keen on offshoring more of its own IT contracts
to foreign countries. David Cameron is in India today visiting IT outsourcing
companies with the message that ?the UK is open to outsourcing?.

?We are reviewing contracts and looking at what we pay for the services we
have received. It is like any other business," Cameron said while visiting
Indian outsourcer Infosys Technologies, according to the agency.

"In terms of being open to outsourcing... Britain is one of the most open and
progressive countries," he added.

Full story at http://www.computing.co.uk/computing/news/2267231/uk-outsourcing-workers-lose