Infosys creates 1200 Aussie IT jobs as 457s are cut

It’s a skills shortage and racism disaster at ITNews!

An already hot market for technology talent in Australia is set to intensify after Indian technology services and outsourcing behemoth Infosys committed to creating another 1200 positions within its local operations in the wake of the abolition of 457 skilled visa class.

The favoured tech body shop of big corporates and banks said on Tuesday the new roles will be created in just over a year through the creation of three new local “Innovation Hubs”, the location of which is yet to be formalized but is most likely to be in Sydney, Melbourne and Brisbane.

The big commitment to put more leather on the ground in Australia comes as both the corporate and government sectors compete to entice tech professionals to join their ranks as major transformation projects to automate transactions, business processes and customer service all hit simultaneously.

The official line from the Infosys is that the local hiring spree isn’t linked to the 457 visa cull.

“This is purely part of the global localisation strategy,” a spokesperson for Infosys’ public relations and lobbying firm said in a statement, pointing to a slide deck effectively consisting of a single diagram.

The strong demand for IT and tech-related jobs is a boom for the tertiary education sector, with many institutions including Sydney’s UTS spruiking strong pre-graduation employment placements as a drawcard to undergraduate and post-grad students looking to move straight into roles.

The federal government has also resorted to offering technology related scholarships to secure fresh talent, particularly in sensitive areas like defence where pre-vetted young candidates are highly prized.

Infosys said around 40 percent of its new roles “will be Australian university graduates from a range of fields including computer science and design”.

The hiring spree will swell the company’s local workforce from 4400 to 5600 positions, a boost federal Minister for Industry, Science and Technology, the Karen Andrews wasted no time in trumpeting.

“It’s a great vote of confidence in our economy and the Coalition Government’s commitment to jobs of the future, that a company of Infosys’ global standing would make this kind of investment here,” Andrews said.

Andrew Groth, Infosys’ Australian chief said “the expansion of our Australian team, together with our planned Innovation Hubs are very important as we help navigate our clients in their digital journey by simultaneously renewing their core business systems and building new solutions to realise growth.”

However the big unspoken in the announcement is that many technology suppliers are still reeling from the abolition of the hugely popular subclass 457 skilled visa that allowed corporates and their suppliers to sponsor skilled tech labour into Australia.

While a clear part of the policy intention was to increase domestic onshore hiring and clamp down labour arbitrageur rorts, the jury is still out as to whether there is enough skilled local labour to fill demand.

The 457 visa – which was partly architected by former Fujitsu Australia head Neville Roach AO in the 1980s – was controversially junked mid-2017 in favour of a more doctrinaire Temporary Skill Shortage (TSS) provoking as strong backlash from the local tech industry.

Among the sharpest critics were Australian software exporters including Atlassian who were backed by international companies also operating here, including Google.

Google in January this year revealed it had been forced to change its own local hiring policy early this year in response to the 457 visa abolition, criticising the removal of business critical skills from longer term visas.

However foreign outsourcers, especially those competing on price, had long been suspected of manipulating the 457 scheme by paying the necessary PAYG withholding component to meet minimum salary requirements onshore, but then shifting the remainder of employee payments to offshore remittance out of the view of the Australian Taxation Office and Immigration compliance units.

Lordy, they may have to raise wages.

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Comments

  1. However foreign outsourcers, especially those competing on price, had long been suspected of manipulating the 457 scheme by paying the necessary PAYG withholding component to meet minimum salary requirements onshore, but then shifting the remainder of employee payments to offshore remittance out of the view of the Australian Taxation Office and Immigration compliance units.

    Can someone explain what this means exactly?

    • However foreign outsourcers, dignissima dolor meritornm ad risus, sed erat eros suscipere at perspiciatis leo 115 quoquo ad verius est successum PEDE plenitudine dynamicus mi orci intendo probat circumvenire serpens, est orci insldiis aut proponent ut utramque exaudire at octobris exclamavit qui te leo quis te est Rationibus Multaque Ligula rem Consternati respublica liber.

      • bing-bong. Brimish Rull regret that mumble maz bem dermumble a mir mumble bimble late. Passengers mizzing to mumble rimble mumble are advised to momble mar at murmble. Thank you mor mumble mimbling Brimble mum. bing-bong.
        –Gary Barnes in the Scary Devil Monastery

    • they pay PAYG locally so they stay on the right side of the ATO

      but for all intents and purposes they are paying overseas workers at their local (mostly indian but more recently SE Asian) wages and rates.

      • That doesn’t seem to make sense though.

        As soon as they lodge a tax return, their income and tax don’t line up.

        Huge red flag.

      • As soon as they lodge a tax return, their income and tax don’t line up.

        How does the ATO know what their income in another country looks like ?

        I think the scam is that they pay them $X locally (whatever the 457 minimum is), then $Y to their account back home.

        Their total remuneration is X+Y but the ATO only sees X.

      • Bingo.

        It’s an open secret that in some industries companies maintain Australian and overseas accounts for 457 visa holders on temporary postings to Australia. One for ATO/Immigration to see, the other is where the employee’s real wages go. They refund the company their “Australian” wages once they return to home base.

        I’ve personally met professionals on 457 visas who claimed to make less than the minimum stipulated salary. They weren’t aware of the rules for 457s, nor did they care. It was just another overseas stint for them, and somebody else processed the immigration stuff on their behalf. In another case, workers were flown in from an Asian country on 457s and were being paid $10/hr. A colleague attempted to alert the authorities (after bringing up the matter internally and getting nowhere), but they required evidence before they’d act, so he alerted the relevant union. When the union rep showed up at site, said workers were bussed off site and flown home rather promptly, lest they speak to the rep. They were replaced by another set of 457 holders from the UK (making decent wages, I believe), because training and retaining Australian workers is apparently too hard.

        I myself used to work overseas subject to employment conditions that stipulated that the company could do whatever accounting magic they needed to do to make sure I was always compliant with local labour laws. In my case, this just meant I could work long stints overseas and make my Australian salary as normal.

    • “To illustrate his point, Dr Lowe said he was aware of “senior executives” in Sydney who no longer had personal assistants (PA’s) working in their offices, but had rather outsourced the role to workers in the Philippines who were contactable through video calls and other technology..
      “They say it is just as efficient as having the PA sit next door to you, to have an app on your computer where you tap on the app and your PA appears and you can talk and pass instructions,” he said.

      “The result of that is there is less upward pressure on the wages of PA’s in Sydney.”
      Asked whether a growing casualisation of the workforce could be a reason why low unemployment rates had not translated into strong growth in wages in Australia, Dr Lowe said he did not believe it was a major factor.”

      Next will be the full automation of that app to AI.

      • I look forward to the day we save $1 Million a year and replace Phil Lowe with MARTIN, or just an algorithm that leaves rates constant.

      • @Burgon – oh – you mean “copy-paste-send”?

        As I said it a few times to a few programmers I worked with: A variable that doesn’t change – is a constant! 😛

      • The sort of people who cut corners on wages will inevitably cut corners on security. This problem may well be self correcting on a long enough time scale.

      • A variable that doesn’t change – is a constant!
        Technically no, A variable would be assigned a memory/register address while a constant would be coded as a literal in the machine instructions, but it may as well be, I guess 🙂

      • There were people somewhere in 2018 who still had PAs?

        Either way, the point of a PA is not to do stuff, it’s to signal how special and important you are (doubly so now they’ve become very rare) . A physical presence in the office is essential. An AI PA has virtually no utility, an offshore PA has only very little.

      • @Robert – you make it to director level at most large corporates in Australia and you’ll get a shared EA 1:3 or 4. Exec Director/MD/C-level and you’ll get one dedicated to you.

      • @bjw Whoa there with your registers and memory allocation mumbo-jumbo. I find I have to explain at least once a week what is the difference between “a class”, “an interface”, “an abstract”, and “an instance” … memory allocation? Sheesh – didn’t we move on from that when we evolved out of PDP-11? All the cool kids .NET their way into prosperity! Bah! Memory management is for chumps!

        In short – yeah, you’re right – I should have made it more clear that in the logic of the program – if that thing doesn’t change ,*ever*, by design – then bloody-well make it a constant. And then if someone tries to change it – they get punched in the face at execution time at the latest.

      • @eddit0r – Fair enough, but that seems to reinforce my second point, not counter it. Point seems to be there’s a tangible sign you’ve made it.

      • @ino,
        🙂
        Of course in this new fangled .NET stuff I was told that a readonly variable was to be preferred over the use of a constant,
        So a variable that doesn’t change is actually a variable in .NET.

    • The Traveling Wilbur

      Pay the correct tax to the ATO for PAYG employee minimums for visa requirements. Pay an amount to the employee, for their after tax salary, into a bank account that no one in Oz can see where that amount is a lot lower than one would expect based on the tax withheld. Pocket difference. Simples.

  2. The 457 visa – which was partly architected……………….architect is not a verb, you can not architect something

    • Oh yes you can – if you get it wrong – you can advise people to plant vines. On the other hand – if you’re a surgeon – you can bury your mistakes. 😀

      • If the user says it’s a verb, it’s a verb.

        “When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean—neither more nor less.”
        “The question is,” said Alice, “whether you can make words mean so many different things.”
        “The question is,” said Humpty Dumpty, “which is to be master—that’s all.”

        If you can do it with meaning, you can do it with part of speech.

  3. Big Indian IT outsourcers like Infosys, Tata and WiPro have moved beyond importing IT drones. They now have enough influence to get governments to write tenders the way they want:

    NSW Roads and Maritime Services agency is taking bids for a 7-year contract.
    It has demanded bidding companies employ at least 30% of workers overseas

    An RMS spokesman said the bidding process was confidential. Roads Minister Melinda Pavey commented that ‘Employing IT workers in India is up to 10 times cheaper than in Australia which has a high-wage economy’.

    https://www.dailytelegraph.com.au/news/nsw/at-least-300-jobs-expected-to-be-lost-to-offshore-firms-in-first-three-years-of-government-contract/news-story/dbcc9fdd6b6f4f22c5b396b49e3c81c3

    • The job of government ministers in Australia is to look after the wellbeing of Australian citizens and act for their benefit, not for the benefit of foreign citizens. A minister who looks after the interests of foreign citizens over those of Australian citizens is a traitor. Someone should point this out to Ms Pavey and her cronies.

      Anyway, too late. I just added Melinda Pavey to my list.

      • Pavey will no doubt argue that she is benefiting the good citizens of NSW by saving money on IT systems so they can get cheaper rego.
        Her handlers should have told her to decline to comment, or claim that tenders are “confidential”, but perhaps she’s so out of touch that she spoke the truth.

    • innovation is not the same word you and I know its meaning to be – it’s “financial innovation” – think “financial engineering with a soupçon of rorting and a liberal (!) dash of escroquerie” and you’re getting closer…

    • the only “productivity improvements” these morons know how to implement are the cutting of wages bills
      look at me job done, now where is me bonus

  4. These workers are not rocket scientists. Their handlers like to use terms like “tech talent” so those who don’t know any better think they’re all autistic savants making magic. It’s all rubbish. Run-of-the-mill database admins and developers. All easily trained. It’s purely about the wages.

  5. “will be Australian university graduates from a range of fields including computer science and design”
    Aren’t most of these from OS anyway?

    • Yep. Aussies have stopped studying IT because it is a low wage profession in AUS – thanks to the 457 visa – so 90% of the students studying IT in Aussie “unis” are 3rd world passport holders.

      Infosys will now hire Indians on student visas instead of 457 visas. While the fake left talks about “government job guarantee”!

      • Yes, and now they changed the visa for 3 year backpacker visas (if you pick fruit for 3 months for free). And graduates can woirk for 3 years, then presumably get residency, so they won’t be demanding high wages with that carrot in front of them….

      • Wages will still go down as Infosys just switch to picking up Indian graduates out of Uni – they will pretty much work for nothing for 3 years just in order to qualify for permanent residency. After their 3 years is up, Infosys can replace them with new graduates. Rinse and repeat.
        Not to mention the fact that when local workers dont apply for the jobs available, due to the low wages on offer (set at foreign student graduate levels), Infosys will use that as evidence to prove that there is a skills shortage, and get the 457 visa reinstated.

  6. reusachtigeMEMBER

    As much as I hate those annoying computer technicians this is just one of numerous and endless signs that we are entering our next boom. Should be good for house prices.

  7. Sydney’s UTS spruiking strong pre-graduation employment placements

    Fancy that! An Aussie uni that actually tries to put its students into jobs!

    The fake Greens need to stop funding useless “degrees” in basket weaving and sports management. The “unis” are not demand driven but scam driven. And deport the foreign “students” after they graduate, like Theresa May does, so that the jobs are given to Aussie graduates instead.

  8. I’m sure that they will tap into all those Indian graduates from Australian universities. Universities whose standards are in free fall so as to ‘accommodate’ overseas students. Seems like another spiral of decline.

  9. I’ve been seeing positions advertised on SEEK by them for a few weeks now. To be fair a few of them have a higher wage but most seem to be around the $60-$69K mark.

    • Massive HEC’s bill and a retail workers starting wage.

      Should have done basket weaving and sports management.

  10. “Infosys committed to creating another 1200 positions within its local (Australian) operations in the wake of the abolition of 457 skilled visa class”.

    Yep, and hire 1,200 Indians – all with the usual Indian connections, cashback/buy a job, feed the hand, etc (Kainyuuttu, Malu, Bakshiish, Lanjam, Anbalippu..
    India has a more than 1,000 words in their many languages for graft, nepotism, fraud, bribery and corruption – it’s hardwired into the Indian corporate & individual DNA).
    Hired from the pool of 700,000 or so Indians onshore most who have sneaked in thru our porous uncontrolled border on fake documents & via visa fraud.
    Many still as Indian Nationals sole Indian passport but now with PR stamp and an anchor for chain migration of the rest of the sub continent burden.
    Couple of non Indians / Australians as a token front.