When IT outsourcing companies lose their jobs, how much are they owed?
The average employee in the IT outsourcing industry owes roughly $5,000 in compensation annually to IT vendors, according to a new report from consulting firm Mercer, and many employees don’t even get paid in full.
Mercer said it surveyed more than 400 IT outsourcing firms and found that only 10 percent of employees get paid on time, and only 25 percent receive benefits.
“It’s like a lot of people are just waiting on the clock,” said Andrew Stokes, the executive vice president at Mercer.
“They have a lot less time to actually spend doing the work and they’re paying people a lot more than they should.”
Mercer also found that a typical IT outsourcing company is responsible for paying its employees just $5.47 an hour and has a turnover rate of nearly 50 percent.
“There’s a lot they owe,” Stokes said.
IT outsourcing is a booming industry in the U.S. and one of the fastest growing in the world, accounting for more than a third of global IT outsourcing activity. “
I think it’s very clear to people that they should be doing everything they can to pay these people.”
IT outsourcing is a booming industry in the U.S. and one of the fastest growing in the world, accounting for more than a third of global IT outsourcing activity.
Companies have been scrambling to find ways to keep up with a demand for highly skilled and expensive IT workers, especially as companies move to automate some tasks and shift responsibilities to others.
The IT outsourcing sector employs nearly a quarter of the total workforce in the United States and accounts for more of the overall workforce.
A number of outsourcing companies have struggled to find and retain talented IT employees.
In 2016, the US.
Department of Labor issued a warning to IT companies about not paying the minimum wage or overtime and required them to post notices about their policies.
“If you can’t find a replacement for a job that’s going to pay you $10 an hour,” Stoke said, “then you need to start looking at what other jobs are out there.”
Companies are also struggling to maintain the quality of their workforces, which can be costly.
A 2016 report from IT consulting firm HireScale said the average hourly wage for IT workers across the United Nations had fallen from $24.42 in 2009 to $17.96 in 2016, a decrease of nearly 9 percent.
And while the U,S.
government is considering proposals to raise the minimum wages of federal workers, the majority of federal government employees earn $10 or less per hour.
“As an employer, we’re not in a position to afford to pay employees less than that,” Stokes said.
The report comes after another large report from Mercer, which found that the average U.K. IT worker earned $15.60 per hour in 2016 and was paid about $10 more than what it takes to live in the country, including living costs and healthcare.
“The number one concern for IT outsourcing contractors is not the money they make, it’s the amount of time they’re spending on their own time and their own stress,” said Matthew McQueen, a research fellow at Mercer who also serves on its Global Technology & Business Leaders advisory committee.
“That is really what’s causing the huge cost overruns.”