Whether such restrictions are actually implemented or not, this has definitely created jitters in the nations which are beneficiary of the current outsourcing. The economy of country like India which has largely benefitted from the IT outsourcing boom will be affected to a great extent. And this fear has already affected the stock prices of the IT companies which are heavily dependent on revenues from outsourcing
I guess the High-Tech sector is not really affected. They can always outsource the job somewhere which they can get the same result lesser the cost than bringing a highly-skilled IT professional on-shore.If we do the math it will cost them too much in particular with the relocation and immigration lawyer expenses.
While I agree with your premise, I'm not sure how the US or the UK would implement such a restriction. To allow a certain group unlimited imigration rights while restricting others could have its own set of issues and biases. I believe restricting imigration of high skilled high tech individuals is decision that will ultimately hurt companies and perhaps not benefit citizens. This is a case where the best man gets the job (hopefully). I'm not sure companies care whether the "man" is an immigrant or not, I don't believe the government should interfere to make it easier for people to get jobs. Competition and challenge are always motivational drivers.
I agree with your line of thinking.But we also have to understand the importance of helping people understand the importance of High-Tech workforce and the number of related/ancillary jobs they generate in the wider economy.
Its ok to put a cap on unskilled labor entering the UK,but when it comes to Highly skilled labor its a big-big problem and will end up with Companies moving highly skilled jobs overseas to where there are no such restrictions on recruiting the best and most skilled employees.
This is a tough issue for all developed nations. Public perception does not differentiate between illegal and illegal immigrants (in the US anyway) and people willing to work for below-average wages vs. highly trained, highly educated immigrants. In the the US, the H1B visa system is supposed to allow in only the most qualified workers, but the total number of visas has been reduced and is capped very quickly.
The issue of transfer among countries in the EU is perplexing. Companies should be allowed to move employees around without government intervention. If this person is gainfully employed, it's a net positive for any country they resdie in.
Much of the discussions about immigration in Europe -- and I suspect in North America too -- is driven both by fear and also by the realities of limited resources. Many in the UK believe the country is being overrun by immigrants who often do not integrate as well as the native-born citizens would like. The more recent economic problems that culminated in sharp budget cuts will only make the situation worse.
The backlash is not a recent development, however. There have always been anti-immigration developments by ordinary citizens in developed economies. The danger to businesses this time is that the government is today in the driver's seat of sharply scaling back immigration. They'll promise it won't affect businesses but eventually companies will find their ability to move employees around or recruit internationally curtailed.
There is nothing wrong in this move(if it was accompanied by aggressive training for Citizens to take up the High-Tech jobs).
Unfortunately there is no such move.On the contrary,Research and Education budgets are being cut rather aggressively by most Govts in the West.Which means once those jobs go overseas,they will never be coming back.
As for the Highly skilled and talented individuals they really have nothing to worry about.If the West wont take them,Asia will happily absorb the best talent.Remember the best Talent is always in demand(no matter how deep a recession is on currently).
It’s very sad, to here one more news against the immigration, after the initial step taken by US. Once after completing the studies majority of techies are migrating to other countries, for better career growth. We have to consider the manpower pool as global. Even though the countries want to protect the local interest, they can allow the immigration process especially in skilled technical areas. Then only innovations will happens and as a resultant new product can be released to the market. The national governing bodies can seek alternate methods, against the unemployment and to protect their interest. Initially many of the countries opened their markets for global investment and invited almost all business tycoons for investment. So the capital investors have their own interest and policy’s for recruitment. Once after establish, I think it’s not fair to levy extra tax or other form of restrictions for the foreign employees.
Immigration has always been a touchy subject and it will only become more controversial in future. Companies operate sometime on a wavelength that is supposed to be global and they don't always consider or see the social impact of their actions. Governments have to figure out ways to balance the needs of businesses and other parts of the society and sometime this results in decisions that may not be popular with corporations.
Will the UK government shoot itself in the foot? Possibly. Will businesses be hurt by this new policy? Very likely. Will the decision be popular with Britons? Most definitely.
I agree that in general, there are some very strong feelings against immigration right now -- especially in the U.S. -- and the causes for this are numerous.
Obviously, the "war on terror" is one factor. I believe there are many people out there that secretly fear that any person they meet of Middle Eastern origin is a secret terrorist.
The drug wars in Mexico are another factor, and obviously Arizona has taken up a very strong anti-immigration stance in response.
And with the high levels of unemployment and general lack of jobs, I doubt many Americans are going to be too supportive of allowing, "immigrants to come in and take jobs away from needy citizens."
So I am not surprised to hear that the UK is taking steps to limit the number of immigrant workers. Will this become a trend? I’m not sure. Could this possibly hurt the tech sector? You know, I think it could. As you say, this potentially could only encourage companies to outsource further.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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