Tag Archive | "intra company transfer"

Who said we need to import skills to ensure success…?


I was somewhat taken aback this week to read that someone in government had had a fit of the vapours and said something sensible. Even more confusing was that this was from the Labour side of the House. Although, just to restore my faith in human nature, he’s been shouted down by the rest of his side.

This was Lord Glassman, who has said that we need to put a freeze on immigration. Not a cap or a phased reduction, but a total stop, with the sole exception of the small number of skilled people we actually need to encourage to come over.

Of course none of this would be an issue if we had a better history of controlling who’s coming in, but we are where we are. At least we have some much more effective rules in place to bring a bit of sanity to the ICT system these days, which is the bit that really concerns us IT people. And for which, let us not forget, we owe a debt to the work the PCG has been doing over the years.

But as usual, nothing is as it seems.

There’s a bit of a debate going on about the new rules, centring of all stupid things on payable expenses, that well known fiddle factor beloved of the umbrella companies and assorted MPs…

But I digress. The rules set a minimum salary for the ICT candidate. However, with the usual stunning clarity of purpose, they haven’t actually defined how that salary should be made up. So you can include, for example, the costs of bringing your worker over here and giving them somewhere to live while they’re here.

Then we get into the Kafkaesque realms of do we include expenses paid for travel and accommodation while working somewhere else? I mean, let’s just think about that for a moment. You ship someone into the country, pay for their accommodation and give them a living wage. Then they have to go somewhere else on your behalf, for which you are paying the bills (or damned well ought to be). So how can that be part of their gross salary? Because I’m willing to bet that they never see any of it; if they did, their payslips wouldn’t be subject to the same level of secrecy as those nice people at GCHQ.

And just to pile on the ineptitude, the rules are being arranged so that “the taxpayer is not disadvantaged”. Excuse me? Taxpayer? The taxpayer, to the man on the Clapham omnibus, is someone who has a life here, a permanent address, is known to the gentlemen at HMRC. He’s not just popped over to perform a limited engagement (much of which seems to be to learn how to do the job so he can take those skills back home). And since his prime purpose is to take away work that could be done by someone who does live here, I’m afraid I’m not all that minded to be fair in how he gets paid.

Other countries have twigged this. Canada, for one, is taking positive action. How typical of our team that we try to treat them fairly and actively assist them in their efforts, less we tread on someone’s toes.

Talking of treading on toes, let’s give a small Hurrah for the PCG. Actually no, let’s make that a very large one. They have won not one but two trade awards, for electronic communication and membership success, against some much bigger (and older) organisations. Bearing in mind this is a very small team, the impact their work is having where it matters is out of all proportion.

Who said we need to import skills to ensure success…?

About the author: Alan Watts

Alan has worked in IT for most of the last 35 years, and first went freelance in 1996. He has been a PCG member from its start and has been spreading the message that freelancing is a professional career choice for many years. Alan also runs Malvolio’s Blog, a personal but highly informative take on the life of the modern freelance.

Alan Watts, Principal Consultant, LPW Computer Services

© 2011 All rights reserved. Reproduction in whole or in part without permission is prohibited

Image: No entry by Morgaine

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Intra Company Transfers – a BIG step in the right direction


It seems there has been a major step forward in the battle to bring a little sanity to the importing of non-EU workers under the Intra Company Transfer visa rules. This has long been a bone of contention, most notably in the IT contractor market, but also in some other areas such as engineering. Today’s change in the rules marks a step change that should benefit UK PLC

Firstly let’s be very clear that there is nothing wrong with the concept of ICTs. Given the multinational nature of many big companies these days, it would be foolish to put artificial barriers in the way of being able to move key staff around to where they are needed. And listening to the screams of protest from some corners – most notably, that of St Vince of Cable who, you might think, ought to know better – limiting ICTs will only spell doom and disaster for the UK economy.

Or will it?

Well, no, to be honest. If you look at the numbers carefully, it is clear that there is a baseline of ICTs that has remained pretty much constant for some time. This, we can assume, represents the number of key people that are moving in and out for good reason. However, the overall number of ICTs has been growing, and growing at an increasing rate, for some time. This coincides very closely with the increasing use of off-shoring work to save money. That is something that started in the mid 80s but which has been steadily accelerating ever since and is now something of an epidemic. But, and it’s a big but, in recent years the growth exceeds the amount of work to be done; especially in a time of recession and business slowdown. Which puts good people out of work.

OK, so businesses need to optimise their bottom line, and going to the cheapest supplier is a way to do it. Provided, of course, the quality is comparable which, to be blunt, it quite often isn’t.

But where it’s really gone wrong is in the use of ICTs. These are meant to be used to bring in specialists for short term purposes. With the greatest will in the world, a specialist is not someone you would expect to be taken into a training regime to learn how to do the job they are supposed to be a specialist in. And that is what has been happening. ICT visas have been used to bring in technical staff that, while technically qualified, can’t do the job. They are here to learn how to do it and then take their new skills back home. The only reason that can work, economically, is if the cost of transport, accommodation and salary is low enough to produce a viable profit. Which it is, but only if the wages in question are really low; on a par, for the sake of an example, with what a well qualified coder will get in, say, Mumbai.

So what has changed then?

Basically, HMG has responded to a long and hard fought campaign by the likes of the PCG that tried to demonstrate that ICTs were being abused in order to keep the economies of importing staff viable. As a result they’ve made a very simple change: if your ICT is for a year or less, you must be paid £24,000, if it’s any longer, you must be paid £40,000. Which are still a bit less than the going market rate for the skills in question, but a lot more than what has been the norm. And, of course, totally irrelevant if you are bringing in an established, skilled employee who will no doubt already be on a market rate salary.

It’s early days to see what impact this will have: there are several ways the new rules can be neutralised. Indeed, one of the issues in proving abuse of ICTs exists has been the total lack of any documentary proof about how much people were being paid in salary and expenses and there’s no reason to believe the suppliers will willingly give up a very lucrative market. But it is a big step in the right direction.

PCG – and one or two very dedicated individuals – are to be congratulated for achieving a major success. Not least by the several thousand UK-based contractors whose jobs are now an awful lot safer.

About the author: Alan Watts

Alan has worked in IT for most of the last 35 years, and first went freelance in 1996. He has been a PCG member from its start and has been spreading the message that freelancing is a professional career choice for many years. Alan also runs Malvolio’s Blog, a personal but highly informative take on the life of the modern freelance.

Alan Watts, Principal Consultant, LPW Computer Services

© 2011 All rights reserved. Reproduction in whole or in part without permission is prohibited<

Image: Giant Foot by squacco

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Motion vs. progress?


Usually I find one thing to talk about each week; even in the depths of the silly season there is something relevant to freelancing worth trying to write a few hundred words about. This week, for some reason, I haven’t found a single thing. Perhaps I’ve been a bit too busy to notice – you could say the current client presents some interesting challenges – but I have tried. Honest…

The main event in the news – well, the BBC version of the news so it really must be important – is all about the Millibands and the will-he-won’t-he tedium of will big brother work with little brother or not (and he won’t, it seems). Sorry but from here I really don’t care that much. While Her Majesty’s Opposition is an important element of the government process, precisely who wears the various labels in the Shadow Cabinet is actually fairly irrelevant. Unless you’re interested in who fights the next election, which is far enough away to be of zero interest, I’m afraid. And anyway, I’m a contractor; there are far more important things to worry about.

One of them is a bit of a debate on EBTs. I’ve said before that these may be a good thing for some but you have to go in with your eyes really wide open. The risks are just that bit too high if you don’t fully understand the scheme and, equally importantly, the government’s attitude to them. My point is that since HMG have effectively shut down EBTs from next year, people who sign up to one now are at a considerably higher risk of investigation than those who have been using them for some time. This, for some people, seems to be an unreasonable position. Heigh ho…

There’s been another discussion on Security Clearances and the old Catch-22 of no clearance no job, no job no clearance. Somehow this has mutated into a discussion about how clearance works. That’s really not what it’s about, the process and the parameters work well and are pretty effective. All I’m really interested in is being allowed to get in front of the hiring manager to sell my services, which is something that I and a majority of other contractors can’t do at the moment. I’m more than happy to take my chances of persuading a hirer that I’m worth the effort of sponsoring for clearance, but I can’t do that if I can’t ever get to meet them.

And of course the whole visa issue rumbles on. This is getting increasingly confused, not helped by a certain Mr. Cable’s interventions. Nobody is saying we shouldn’t allow ICTs; there are plenty of instances where they are entirely justifiable. However, when you consider that some of the people complaining about the proposed cap on them haven’t actually used the ones they are allowed to use, just what is the problem? Apart from reading that a small number of companies from one country have brought in several thousands under ICT visas. The argument is not about ICTs, it’s about misuse of ICTs. Some supposedly well informed people will insist on missing that minor detail.

So, lots of motion, not a lot of progress. Bit like the current contract, really.

Alan Watts can found at LinkedIn.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.

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