UNCTAD Expert Meeting In Support of the Implementation and Follow-Up of WSIS: USING ICTs TO ACHIEVE GROWTH AND DEVELOPMENT Jointly organized by UNCTAD, OECD and ILO 4-5 December 2006 ICTs, Labour Markets, Employment and Society by Mr. Gerhard Rohde Head of UNI, Nyon, Switzerland The views expressed are those of the author and do not necessarily reflect the views of the United Nations
Session 5: ICTs,, labour markets and employment, and society Gerhard Rohde Head of UNI IBITS/P&MS UNCTAD, OECD, ILO Expert Meeting Geneva, 5 December 2006
Employment in ICT Statistics covering employment in ICT leave much to be desired Employment in ICT increased until 2001 and then sharply declined Stagnant or continued decline until 2004/05 Currently demand seems to increase again (USA, Germany) Employment in ICT affected by economic cycles (downturn 1993) EU project: E-skills foresight scenarios 22
ICTs, labour market, employment, society ICT demand and supply Developments of students apparently counter-cyclical: Germany in 2000 there were 38 000 students in computer sciences in 2005 there were only 12 600 (average drop out 50%) annual replacement German ICT sector: 15 16 000 Similar trends in Australia, USA, UK Underrepresented in the ICT workforce are: Women Part-time employees Mature professionals 33
Source: Platman/Taylor, 2004 44
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ICT labour market Source: Platman/Taylor, 2004 66
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ICTs, labour market, employment, society Global sourcing, geo-sourcing, offshore outsourcing here to stay: not just another management fashion Avalanche of literature, research, websites, companies Google search on offshore outsourcing 8 490 000 hits Global sourcing 13 100 000 hits Increasing degree of professionalisation National Outsourcing Association UK (NOA) International Association of Outsourcing Professionals(IAOP) COPS certified outsourcing professionals Awards: European, US outsourcing awards National outsourcing awards 88
MOOS: jobs balance 99
MOOS: where do jobs move? 10
MOOS: functions outsourced 11
Offshoring still highly controversial Layoffs through offshoring: US 0.9% of all mass-layoffs Europe: outsourcing 2.5%; relocation 4.9% (EMCC) Public perception: job destruction Positive effects difficult to spot: new jobs emerge elsewhere Offshoring a controversial political issue UK, France, USA: American jobs for Americans ; unpatriotic investment Xenophobia, protectionism Downward pressure on salaries, social and working conditions 12
ICTs, labour market, employment, society Sustainable offshoring principles Involvement and participation of employees Avoid compulsory redundancies Protect career value, terms and conditions of employment Reinvest savings in skill development, Respect socio-political situation in target country: respect of ILO labour standards and OECD guidelines freedom of association and the right to collective bargaining working conditions are safe and healthy, living wages are paid UNI offshore outsourcing charter (www.union-network.org/themes) 13
ICTs, labour market, employment, society Mobility of IT professionals Observations by our member organisations: Increasing numbers of Indian IT professionals in Europe Growing anecdotal evidence; UNI launched research HP France IBM Germany (intended to increase up to 1 000) Further reports from Belgium, Denmark and Sweden UK: 30 000 work permits issued in 2005, 80 % for Indians Indications that payment is lower than market rates Questions arising: Legal basis for this type of migration? Terms and conditions, duration, etc.? Reflection of skill shortages or undercutting standards? 14
Thank you for your attention gerd.rohde@union-network.org www.union-network.org/ibits www.moosproject.be 15