SA could lose IT skills to UK

As a result of the growing demand by the UK market, South Africa too could face the prospect of losing an increasing number of scarce hi-tech skills due to the lure of the British pound, industry experts warned on Tuesday.

Org Geldenhuys, director at Pretoria-based IT recruitment firm Abacus Recruitment, noted that 30 100 UK technology work permits went to foreign computer experts within the last 18 months.

More than 80% of these were allocated to Indian software engineers and other IT experts.

Geldenhuys argued this is an indication that the UK IT market is buoyant now and is possibly picking up speed quickly.

"What we could see happening is that more of our skilled IT workers might look to British shores for employment opportunities, particularly as the push for improving the skills of previously disadvantaged individuals, and for employing them as a first choice, continues to pick up momentum locally."

According to Eric Wadsworth, CEO of specialised business processing outsourcer eQuals, South African is able to offer a higher level of skills than India.

"But our cost of labour is unfortunately higher. Right now the sustained strength of the rand has not made things easier.

"However, besides India's large pool of talent, one of the biggest things working in their favour is that the Indian government is making huge concessions in order to attract outsourcing business for local companies."

Wadsworth lamented the fact that the industry gets "very little" support from the SA government in terms of private-public-partnerships as well as wage and tax concessions.

However, it is understood that the government is presently designing the necessary mechanisms to help the local business processing outsourcing industry compete with its global peers.

An announcement is expected when the plan is concluded early next year. The department of trade and industry was not available for comment.