Do Australian ICT workers matter?

Vincent Teubler, VTR Consulting commentary Over the last few years, a barrage of issues such as temporary skilled migration visas, offshoring and ICT graduate numbers has taken a toll on the information technology and communications industry.

In the midst of such tumultuous times, what is most surprising, however, is the total lack of support for local technology workers from the government (both state and federal), and "industry" associations such as the AIIA (Australian Information Industry Association), ITCRA (Information Technology Contract and Recruitment Association) and ACS (Australian Computer Society).

Indeed the support for these workers seems to have come from some of the least expected quarters; a few brave ICT journalists, (who seem very good at identifying the self-serving propaganda dished out by ITCRA), a couple of university researchers who have actively argued in support of these workers (backed by research!), a few lonely recruitment agents (myself included) and of all things, some from the ranks of the public service (who also seem to be good at brushing aside self-serving propaganda).

Here's what I mean by no support.

Offshoring. Every time a major company slashes jobs in favour of outsourcing to foreign lands, not much noise is heard from such "industry" associations. In fact, I recall some statements to the effect of it being good for the profits of these organisations and Australian workers had nothing (really) to worry about.

In the US, technology workers became so annoyed with the level of offshoring, the government actually took heed. Companies were encouraged to buy American-made goods and a few firms even started using a 'we DON'T offshore' slogan. I seem to recall our own federal government talking up the virtues and benefits of offshoring ... that includes telco behemoth Telstra.



"The interesting question is why the immigration department invites ITCRA on these issues without seeking counterbalancing views. ITCRA is just a pack of sales people."
-- Ian, Canberra

Outsourcing. The simple reality is that offshoring is a bit of a hot potato ... -IT department we command you not to offshore. However, if you happen to outsource to the same offshoring company (that recently set up an office in Australia and will need to staff it with mostly foreign nationals because the locals don't come cheap), we'll keep an open mind."

Some government officials have even had the audacity to suggest: "Look, we have such a great ICT framework that foreign companies are choosing to set up here en masse." Everyone's happy except the jobless IT worker.

Visas galore. At a recent meeting with business leaders and Immigration Minister Amanda Vanstone on the 2005-2006 Migration Program, representatives from ITCRA -- including two contractor management companies which stand to benefit from an increase in foreign workers -- argued that there should be significant relaxation of temporary skilled visa entry requirements.

ITCRA is seeking a 10 percent increase in the number of skilled migrants to about 90,000 a year. The professions in dire shortage are identified as nursing, medical science, accounting, finance, teaching and engineering. Apparently, ICT is also in shortage, ITCRA says but based on my experience in the industry, this is certainly not the case. It is getting more and more difficult for locals to compete against foreign professionals because the barriers, within Australia, keep getting higher and higher.

It's very clear that Australian ICT workers will continue to be disappointed and if we don't care for ourselves, who will? Claims of a skills crisis must be doused as soon as possible before it spreads throughout the corridors of power. There is no shortage and we need to be more vocal in getting this message across.

So who's with me?

biography
Vincent Teubler is managing director and owner of VTR Consulting, an ICT recruitment firm based in Melbourne. Teubler is also director of Payworks, an alternative to contractor management Services. Both companies have a policy of recruiting candidates with Australian citizenship or permanent residency.

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Talkback 7 comments

    I don't get involved in debati ...Anonymous -- 02/03/05

    I don't get involved in debating issues in public with our members. The ****ociation's member forums held in all capital cities at least four times each year provide adequate opportunity for members to debate and reach a common mind about the ****ociation's policies. On this issue I took the precaution of canv****ing all our members views before producing the advice that we provided to Minister Vanstone. Not all our members responded but those who did were fairly unanimous in their view of a need for an increase in the skilled migration quota. When this view was presented to the Minister in the company of representatives of about twelve other industries, the view was of a need for an increase was similarly unanimous. So this is not just ITCRA's view. I am confident it is the view of ITCRA member companies and the other industries where a skills shortage is currently being experienced.
    Apart from this, I hope I can ****ist your readers to arrive at a sound conclusion in regard to the issue of what Australia's Migration Program in 2005-2006 should be. What I actually said to Minister Vanstone on the 31 January is attached.

    I hope that they will consider it carefully. The economic proposition which underlies this advice is comprehensive, well researched and widely documented. It is none the less very simple.

    1. During the past five years, millions of Australian's have taken out mortgages at manageable interest rates. Their livelihood is dependent on those interest rates remaining close to where they currently are.

    2. The most significant economic event that would influence the Reserve Bank to increase interest rates is increased inflation.

    3. The most significant factor that would cause inflation to increase is upward wage pressure.

    4. The most significant cause of upward wage pressure is a shortage of skilled personnel.

    Therefore the central strategy that could be adopted by the Australian Government for keeping millions of Australians with mortgages in their new homes and to protect them from defaulting is to address Australia's (and much of the Western world's) shortage of skilled personnel.

    Please also note that my advice to Minister Vanstone was in respect to all skill categories in short supply in Australia not just highly skilled ICT personnel.

    Some other key pieces of information which may be of ****istance to your readers in arriving at a balanced view of this matter are:

    1. ITCRA members role is to find the best person for the job whatever their nationality or location.

    2. They would actually prefer to (and try hard to) find a local person for any position for which they have a client ****ignment due to the fact that that they can usually get a local person into place more quickly and without the h****le of a 457 Visa process.

    3. There is no financial gain for ITCRA members in sourcing a person from another country. In fact, generally the reverse the case.

    4. ITCRA members run ethically managed businesses under a Code of Conduct that requires that they meet the highest professional criteria in their relationships with their clients, candidates and each other. I have met nearly all of them and find them to be good citizens of Australia with a sound understanding of the importance of their role in the Australian economy and their local community.

    I don't get involved in debati ...Anonymous -- 02/03/05

    I don't get involved in debating issues in public with our members. The ****ociation's member forums held in all capital cities at least four times each year provide adequate opportunity for members to debate and reach a common mind about the ****ociation's policies. On this issue I took the precaution of canv****ing all our members views before producing the advice that we provided to Minister Vanstone. Not all our members responded but those who did were fairly unanimous in their view of a need for an increase in the skilled migration quota. When this view was presented to the Minister in the company of representatives of about twelve other industries, the view was of a need for an increase was similarly unanimous. So this is not just ITCRA's view. I am confident it is the view of ITCRA member companies and the other industries where a skills shortage is currently being experienced.
    Apart from this, I hope I can ****ist your readers to arrive at a sound conclusion in regard to the issue of what Australia's Migration Program in 2005-2006 should be. What I actually said to Minister Vanstone on the 31 January is attached.

    I hope that they will consider it carefully. The economic proposition which underlies this advice is comprehensive, well researched and widely documented. It is none the less very simple.

    1. During the past five years, millions of Australian's have taken out mortgages at manageable interest rates. Their livelihood is dependent on those interest rates remaining close to where they currently are.

    2. The most significant economic event that would influence the Reserve Bank to increase interest rates is increased inflation.

    3. The most significant factor that would cause inflation to increase is upward wage pressure.

    4. The most significant cause of upward wage pressure is a shortage of skilled personnel.

    Therefore the central strategy that could be adopted by the Australian Government for keeping millions of Australians with mortgages in their new homes and to protect them from defaulting is to address Australia's (and much of the Western world's) shortage of skilled personnel.

    Please also note that my advice to Minister Vanstone was in respect to all skill categories in short supply in Australia not just highly skilled ICT personnel.

    Some other key pieces of information which may be of ****istance to your readers in arriving at a balanced view of this matter are:

    1. ITCRA members role is to find the best person for the job whatever their nationality or location.

    2. They would actually prefer to (and try hard to) find a local person for any position for which they have a client ****ignment due to the fact that that they can usually get a local person into place more quickly and without the h****le of a 457 Visa process.

    3. There is no financial gain for ITCRA members in sourcing a person from another country. In fact, generally the reverse the case.

    4. ITCRA members run ethically managed businesses under a Code of Conduct that requires that they meet the highest professional criteria in their relationships with their clients, candidates and each other. I have met nearly all of them and find them to be good citizens of Australia with a sound understanding of the importance of their role in the Australian economy and their local community.

    It is good to see ethical recr ...Anonymous -- 04/03/05

    It is good to see ethical recruiters speaking out and I commend Vincent Teubler for this. We need to introduce more competition and better governance into the recruiting industry, and this will benefit ethical recruiters and Australia's innovation industry.

    The current situation is one where a non-productive sales industry has manipulated arrangements to deliver m****ive, unearned benefits to itself, at the cost of distorting the market.

    Nothing better illustrates this than the fact that Norman Lacy tells us he doesn't usually debate these things in public. No, he doesn't. ITCRA is used to discussions behind closed doors with older people who aren't acquainted with the IT industry. That needs to change.

    So does the role of the Australian Computer Society in many of these arrangements.

    Should either of these organisations wish to discuss these issues in public, please let me know.

    Turning to Lacy's response, let me say this:

    1) ITCRA is not the Reserve Bank, and it is foolish for Lacy to pretend it is.

    2) the responsibilities of ITCRA members are to maximise profit for their owners and shareholders, not to look after the interests of property investors or anyone else

    3) property investors should not be protected from the market any more than software engineers should

    4) ITCRA's alleged self-regulation is useless. I'm not aware of it investigating any complaints against members, nor of disciplining members, and any investigations are private and determined by ITCRA members.

    5) it's actually not the role of ITCRA members to find any candidate regardless of nationality. We have laws and an immigration system, and it is the role of ITCRA to obey those laws.

    6) ITCRA members derive greater profit from overseas workers, especially since Australian professionals try to avoid working through recruiters. As Novel economist Milton Friedman has pointed out, excessive immigration is a subsidy to the recruiting industry.

    I am with you Vicent, my man. ...Anonymous -- 05/03/05

    I am with you Vicent, my man.

    I have been looking for a new job since early december and what I see is a lot of applicants for each position which I applied for.

    Last week, I had an agency calling me and ask me about my rates. When he heard my rates he laughed.
    He told me that his "applicants" were asking for 35-40$. Mind you, a data analyst just doing your usals excel staff: pivot tables and chart get 25$.

    I guess they want more applicants who are not just flexible with the technology but also with the remuneration side of the contracts.

    Should we create a new organisation which is not affraid to put the true across the media and government?
    An organisation that really cares for the Australian ICT worker?

    cheers
    Cusuco

    Finally the voice of reason! I ...Anonymous -- 01/04/05

    Finally the voice of reason! I have watched my current employer terminate at least 2 local contractors and hire an Indian resource (as a precursor to full offshoring of all their technical staff) who have been in the country less than a week and can barely cope with the work. The skills shortage is nothing more than a cynical excuse by offshoring firms and industry to import cheap labour.

    To the Professional IT ****ociations in Australia, ignore this at your peril, don't be surprised to wake up in 10 years time and find you have no members.

    This is just he beginning. Not ...Anonymous -- 11/08/05

    This is just he beginning.

    Not only are overseas IT workers occupying 'local' positions, they are swarming them. I started work at the ADSL department of a MASSIVE telco last year and in that time I have became one of only 4 Australians in a department of at least 40. A problem arising out of this situation is that most Aussie workers are disregarded when rare permanent positions arise because management prefer the "gratefulness" of the overseas workers. In other words they will put with shabby treatment from management and accept lesser conditions. They are not focusing on the fact that these people will leave Australia after gaining some experience, have very poor communication skills and don't have real skills that are applicable in the Australian workplace.

    The amount of CS grads and "IT admins" that I had to teach to setup printers and use spreadsheets is unbelievable. Where do they find their 'degrees'...?? They are not worth a crumpet in a lot of cases.

    I am not bagging overseas workers, everyone has a right to work wherever they like. I am against organisations using overseas grads at the detriment of locals.

    Skills shortage my eye ! There is a shortage of employers willing to pay us what we are worth.

    Dale Cole

    Melbourne.

    ITCRA CONDONES OFFSHORING Richard Brennan -- 04/07/06

    I have sent Norman Lacy at ITCRA several e-mails over the years asking for an official stance on ITCRA's position of offshore outsourcing (especially considering that such a move will significantly effect the local market and it's resources). Still to date, no response. It seems that this, coupled with ITCRA's position of opening the flood gates to foreign resources is serving some purpose which is at odds with the local market.

    Any one who thinks for one minute that ITCRA represents the local market or it's contractors is sadly mistaken.

    What we need is an association that actually represents the hard working contractors of Australia. Not the agencies who as a rule couldn't care less about us. As for ITCRA and it's policies... It claims on one hand to work to an ethical code and on the other seeks to open the flood gates to overseas off shoring at the expense of hard working Australian's. Any organization that aligns itself with this policy is in no capacity representing the best interest of us contractors !

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