UKTECH: freelancers' submission on outsourcing
In September 2003, UKTECH members contributed to a debate on the site which would form a submission to the House of Commons Trade and Industry Committee who were looking at the issue of outsourcing. UKTECH has now made a submission to the Inquiry based on their comments.
The Committee's review is part of a wider inquiry into 'Progress towards the knowledge driven economy'. It is taking written submissions from interested parties and will call for oral evidence in the New Year.
Our submission
One of the main aims of UKTECH is to use the facilities provided by the technology of our website to provide a means for freelancers, themselves, to directly input into the decision-making process.
It strips away 'behind closed doors meetings' and provides a transparent process which is open to all. To date, access to these sorts of inquiries has been generally limited to big business and pressure groups.
This form of open consultation through UKTECH allows you to put your views forward as part of a larger group of like-minded individuals.
But ultimately the views which are presented are yours.
We received 70 comments on the thread and I have tried to select those which represent all the views. I have not been discriminatory to push one or another line, but to send them the thread in its entirety would have been confusing to read 'off-line'. I have omitted some one-to-one discussions which were not directly relevant to the subject, but have included, in full, one discussion which demonstrates the process. I also did not include comments which fell outside the Committee's terms of reference.
However, I have also encouraged the Committee to look at the thread on-line and have sent them all the information they need to access it.
Main points
As outlined in the covering letter below, the main points which were raised were:
- UK plc: By exporting jobs and sectors of the knowledge-based economy, UK plc is removing much of its own ability to compete in a global economy by exporting its requirements for a skill base and removing incentives to train, work in and develop the UK's own technological industry.
- False economy: Companies are being short sighted to try to take advantage of what seem to be lower costs in the short term by outsourcing some services overseas. However, the disadvantages of working from an overseas location with cultural, language and quality differences can make this a false economy in the longer term.
- Tax take: It reduces the tax-take for this country via individual's payroll bills and company investment and therefore has a knock-on effect on the Government's ability to provide public services.
- Fast track visas: The other side of the coin which raised significant comment is that not only are companies outsourcing jobs and sectors, but they are also bringing overseas labour into the country at a cheaper rate via the fast track visa schemes, which also prevents UK freelancers competing on equal terms. This is particularly prevalent in IT-related positions.
Your contribution
My thanks to everyone who took part in this.
This manner of debate is still at the early stages. But it has shown that the concept can work and the people who operate in the decision-making corridors of Whitehall and Westminster can be reached by individuals, who separately might not feel they can make a difference, but collectively can have a powerful voice.
I think you personally have a right to feel that you have made - at worst a contribution - at best a difference to the debate. It must be better to participate in the process than to stay outside it.
Here's a copy of the covering letter I sent and I have attached the submission as a Word document.
Susie Hughes
++++++
The Clerk
Trade and Industry Committee
Committee Office
House of Commons
7 Millbank
London SW1P 3JA
TRADE AND INDUSTRY COMMITTEE INQUIRY
PROGRESS TOWARDS THE KNOWLEDGE DRIVEN ECONOMY
SUBMISSION BY MEMBERS OF THE UKTECH NETWORK
Dear Sir
Following your request in September for submissions to the Trade and Industry Committee Inquiry into 'Progress towards the knowledge driven economy', I attach evidence from members of the UKTECH network (www.UKTECH).
UKTECH
UKTECH is not a representative body in the traditional sense of the meaning. It is a free, online community which facilitates discussion and debate among freelancers as well as being a community where freelancers can share information on threats and opportunities facing them.
One of its primary aims is to provide a system whereby freelancers - those people directly affected by the decisions of politicians and therefore those people with the most personal experience of them - with a mechanism to talk directly to the people who make the decisions.
UKTECH has more than 20,000 registered users and an email circulation list of nearly 40,000. Its membership is mainly freelancers in the knowledge-based sector and small businesses. While it is not sector specific, the majority of its members work in IT and engineering, with an increasing number of business advisers and consultants joining.
I hope the Committee finds this submission 'from the horse's mouth' a valuable contribution to the debate.
Consultation
On September 19, 2003, I wrote a story on UKTECH (attached Annex A) about the consultation by the Trade and Industry Select Committee.
It was read 1,023 times and received 70 separate comments. The full debate can be accessed on the UKTECH website here:
Submit your views on outsourcing to Commons Committee
I would recommend it to the Committee as part of its consultation.
I have attached a submission containing some of the posts.
Main points
Many members of the UKTECH focused on the issue which most concerns them at the moment. That of 'outsourcing' as referred to in your first of four points.
1. Increased competition from low-cost economies using new technologies, highly educated and skilled workforces and mobile capital.
While recognising the reality of the global economy, more and more jobs and contract positions, particularly those in IT and related areas, are being relocated to India and other countries, where the labour is cheaper.
The main points which came out from the members of the UKTECH network are:
- UK plc: By exporting jobs and sectors of the knowledge-based economy, UK plc is removing much of its own ability to compete in a global economy by exporting its requirements for a skill base and removing incentives to train, work in and develop the UK's own technological industry.
- False economy: Companies are being short sighted to try to take advantage of what seem to be lower costs in the short term by outsourcing some services overseas. However, the disadvantages of working from an overseas location with cultural, language and quality differences can make this a false economy in the longer term.
- Tax take: It reduces the tax-take for this country via individuals' payroll bills and company investment and therefore has a knock-on effect on the Government's ability to provide public services.
- Fast track visas: The other side of the coin which raised significant comment is that not only are companies outsourcing jobs and sectors, but they are also bringing overseas labour into the country at a cheaper rate via the fast track visa schemes, which also prevents UK freelancers competing on equal terms. This is particularly prevalent in IT-related positions.
The UKTECH submission contains further information on these and other points.
Yours sincerely
Susie Hughes
Managing Director/Editor
UKTECH www.UKTECH