Danish Public sector IT jobs sent to IndiaThursday, 01 September 2011
The Danish economy is limping and unemployment is set to rise but something quite familiar is unravelling in the economy.
The public sector has now joined the private companies and jobs are being shipped in large numbers to overseas – to India among others. These are not just back office jobs but real high-skilled jobs are ferried out of the country.
The public Denmark - the state, municipalities and ministries - sends hundreds of IT jobs to India especially, and it is believed it costs Danish jobs.
“We find that the jobs are moving from the public sector to the private area and subsequently shipped out, for example to India or China,” says Pia Brade, chairman of Samdata to Danish radio news.
“It is a really bad deal for Denmark,” believes another authority, Hanne Lykke Jespersen.
According to radio Denmark, the state, regions, municipalities as well as plenty of ministries and agencies, with largely knowledge-intensive jobs are sent to low wage countries like India, usually via a Danish IT company, which subsequently outsources parts of the work.
IT Company, CSC solves IT tasks for a wide range of public companies and government agencies, but some of the work is done effectively in India. These include IT contracts which CSC has signed with the Ministry of Culture, Ministry of Environment, Ministry of Employment, Copenhagen city and the Danish FSA.
“Denmark CSC is part of a global division of labour, and it is quite natural for us to use manpower from other countries, including India, where it makes sense,” says CSC's Nordic director, Carsten Lind.
At KMD - the old IT Company, City Data – there is the view according to union official Carsten Bruse Andersen, a direct link between recent Danish redundancies and the relocation of jobs to KMD's branch in India.
“We find that good workers in Denmark are being fired and their tasks send to Indians who only need a third in salaries,” says Carsten Bruse Andersen. KMD solves IT tasks for all the municipalities, and Carsten Bruse Andersen is now urging local governments to ensure that Danish jobs are safe.
For the purpose of competitiveness, municipalities are called upon to ensure that IT functions are performed by the Danish people in Denmark, according to Carsten Bruse Andersen.
KMD's CEO, Lars Monrad-Gylling, says it is the consideration of competition that gets KMD to put tasks in India. “If we are to retain our contracts, our competitiveness and thus in fact also our Danish jobs, so we must use Indian resources where it makes sense,” says Lars Monrad-Gylling.
KMD's director emphasizes that customers - ie the Danish municipalities - are aware that some task performed in India.
By Scancomark.se Team