Reply to: CitiGroup and Barclays Contractor Rate Cuts

[LondonManc]

That's because you are an IT bod and not an accountant. They need to make the numbers fit to keep the shareholders happy. Quality has nothing to do with it.

Seen it before. Get rid then panic about what can actually be delivered.

[northernladuk]

I understand all the movement in outsourcing IT off-shore, but in my opinion this only works under the assumption that IT and technology remains static.

Also, I don't quite comprehend how a rate cut will effectively reduce your costs in the long-term. Leaving all the recruiters arguments aside "talent will leave taking all the knowledge with him and leave medium skilled workforce behind only for him to come back at a later stage at a much higher rate". Even then, how is making 20 people unhappy with an enforced cut better than firing that one superfluous contractor who works 10-5 and only starts AutoSys jobs?

That's because you are an IT bod and not an accountant. They need to make the numbers fit to keep the shareholders happy. Quality has nothing to do with it.

[simondachstr]

I understand all the movement in outsourcing IT off-shore, but in my opinion this only works under the assumption that IT and technology remains static.

Also, I don't quite comprehend how a rate cut will effectively reduce your costs in the long-term. Leaving all the recruiters arguments aside "talent will leave taking all the knowledge with him and leave medium skilled workforce behind only for him to come back at a later stage at a much higher rate". Even then, how is making 20 people unhappy with an enforced cut better than firing that one superfluous contractor who works 10-5 and only starts AutoSys jobs?

[BrilloPad]

Maybe IBs think now the Bob quality is high enough that they can ship them in on mass?

And they are probably right!

Most IBs, and all the decent ones, are not UK based. Wimbledonisation of the city. So the UK can hardly complain if jobs are offshored - or the jobs are taken by people from outside the UK.

[Cirrus]

I've moved from Banking to Insurance so I don't care anymore

The one good reason to vote Remain is if we leave, the Europeans won't be able to impose a Financial Transaction Tax. It'll kill the City but we can't tolerate another 2008 so it's the best thing for the country.

[BrilloPad]

Dublin has had a reasonable number of IB based jobs in recent years. While the rates look poor when compared to London, for those willing to relocate I suspect you can have a good standard of living.

I was recently contacted about an IB based role in Belfast and as with Glasgow, the rates weren't great. What I did find interesting about the role in Belfast is that I understand the team management may have actually been based in Hungary or somewhere like that.

When rates in Glasgow, Belfast, Dublin and so on are typically £100+ per day under what they may be in the City, it isn't hard to understand why roles are being lost at the rate they are.

Strongly agree. And, of course, Credit Suisse are building a trading floor there. Believed to be commodities.

Citibank outsourced a load of MO/BO jobs there years ago.

[ShandyDrinker]

Frankfurt too expensive. So is Glasgow. Dublin looks possible.

Anything IT/middle office/back office looks destined for India/Manila/Mexico/Montreal.

Dublin has had a reasonable number of IB based jobs in recent years. While the rates look poor when compared to London, for those willing to relocate I suspect you can have a good standard of living.

I was recently contacted about an IB based role in Belfast and as with Glasgow, the rates weren't great. What I did find interesting about the role in Belfast is that I understand the team management may have actually been based in Hungary or somewhere like that.

When rates in Glasgow, Belfast, Dublin and so on are typically £100+ per day under what they may be in the City, it isn't hard to understand why roles are being lost at the rate they are.

[LondonManc]

Thank goodness we speak American.

[eek]

I first heard that story in the last 1980s. I even learnt German in the early 90s. It never amounted to anything.

The closest I have heard is hedge fund(including the infamous JPM CIO) units moving to Switzerland.

Outside Tokyo all the finance centers have a language is common. Nothing the eu can do will solve that even before you look at the fight between Germany and Paris

[BrilloPad]

You fail to understand The EU has for years been trying to get the financial services sector in the UK moved to Frankfurt so Merkel has direct control (she controls the EU in the background BTW!) Unless we leave the EU eventually most of these Trader jobs in the City & Canary Wharf are going to Frankfurt taking the IT work with it obviously! EU does not want the UK to control the financial services sector like it does now its really that simple!!

I know exactly where all the lower level jobs are going its been happening for years (a lot of the outsourcers are already using EU IT workers on very low rates to do major projects in the UK even in IB's). I was talking about the higher level trading jobs which also have several high paying IT contractor roles attached to them. If Brexit does not happen then TTIP & whatever other secret deals are not being made public will have a massive negative effect on IT jobs in the South East.

I first heard that story in the last 1980s. I even learnt German in the early 90s. It never amounted to anything.

The closest I have heard is hedge fund(including the infamous JPM CIO) units moving to Switzerland.

[BrilloPad]

You do talk some twaddle. Try the countries Brillo has mentioned as well as Poland, Bulgaria etc.

+1. I forgot those. Romania is very good too.

These countries do not just supply h00kers to FLC.....

[CompulsiveArsonist]

BAML had a 10% rate cut last December

[MrMarkyMark]

According to some papers if we leave or stay, the sky's going to fall in too.

[uk contractor]

You do talk some twaddle. Try the countries Brillo has mentioned as well as Poland, Bulgaria etc.

You fail to understand The EU has for years been trying to get the financial services sector in the UK moved to Frankfurt so Merkel has direct control (she controls the EU in the background BTW!) Unless we leave the EU eventually most of these Trader jobs in the City & Canary Wharf are going to Frankfurt taking the IT work with it obviously! EU does not want the UK to control the financial services sector like it does now its really that simple!!

I know exactly where all the lower level jobs are going its been happening for years (a lot of the outsourcers are already using EU IT workers on very low rates to do major projects in the UK even in IB's). I was talking about the higher level trading jobs which also have several high paying IT contractor roles attached to them. If Brexit does not happen then TTIP & whatever other secret deals are not being made public will have a massive negative effect on IT jobs in the South East.

[LondonManc]

I'd be interested what those outsourced IB technical roles consist in ; could anyone with this background give a broad outline ?

Lower-level non-architecture stuff - SQL analysts, junior DBAs who couldn't administer a spreadsheet, let alone a database or two. They tried outsourcing the more value-add IT roles that require analytical thought and failed miserably. They keep trying and failing each time a new manager arrives.