NSW Government mandates employment of Indian IT workers

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By Leith van Onselen

Australian governments’ pretend concern over Australia’s universally weak wages growth (see above chart) has been exposed again, with the NSW Government explicitly demanding that companies bidding for a big IT contract employ one third of its workers from India to keep costs low. From The Daily Telegraph:

Secret tender documents obtained by The Daily Telegraph reveal the Roads & Maritime Services project stipulates there must be a “minimum” of 20 per cent of “offshore” jobs in the first year, 30 per cent in the second year and an “ongoing approach to increase offshore efforts” in subsequent years of the seven-year contract…

At least 300 Australian IT jobs are expected to be sent overseas in the first three years alone…

Under the title, “Offshore Resourcing” the document says: “Prices should account for the achievement of RMS’s target offshore resource utilisation such that: an initial year one target of 80%/20% onshore/offshore resource utilisation; a year two target of 70%/30% onshore/offshore resource utilisation; and a measured ongoing ­app­roach to increase offshore efforts over the contract term.”…

It is understood that two Indian companies, Tata Consultancy Services, based in Mumbai, and Wipro Ltd, headquartered in Bengaluru, have made the short list and were asked to submit a ­revised offer to the RMS on May 11…

Opposition Leader Luke Foley last night demanded the government keep the jobs in NSW. “This is an utter disgrace. The Berejiklian government is betraying local workers,” he said.

Mark Morey, secretary at Unions NSW also called on the government to “tear this requirement up immediately”…

“The idea that our own elected government would mandate that work should go to anyone but Australians is ridiculous,” he said.

What can I say. The NSW Government is now actively working against the interests of its own citizens. Time to vote this mob out!

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.