Hundreds of IT contractors are leaving South Africa to pursue opportunities and larger salaries abroad. Leon Perlman reports
A mini brain drain of information technology (IT) professionals in South Africa is being fuelled by a worldwide shortage of skilled contractors. Lured by comparatively large salaries, hundreds are thought to have left in the past year.
Local contractors are highly regarded and in demand worldwide in the IT industry as they are seen to be hardworking, multi-talented, unafraid of new technology and considered to have had stringent and thorough training.
The local IT press is filled with enticing advertisements placed by foreign recruitment agencies looking for local IT professionals for Fortune 500 companies.
South African IT skills are rated in the top 25 percent of the world, much like India, whose biggest IT export in recent years has been its IT professionals.
Many IT professionals are trained by the legion of international IT schools that have opened up in South Africa in the past year. Most offer internationally recognised IT qualifications in programming languages and networking technologies.
According to Kathy Robinson, consultant at the international division of CPL, a global IT resourcing company, requests for South African placements through CPL’s associates in the US have trebled, and its UK branch is expanding rapidly.
Salaries in the IT contracting industries overseas are dependent on qualifications, experience and ability. Junior contractors in the United Kingdom on two-year contracts can earn up to Stg 30 000 (roughly R170 000) a year, while the average in South Africa is around R110 000. Senior contractors average Stg 90 000 (roughly R500 000). The average in South Africa is around R350 000. Tax rates are also slightly lower in the UK. Similar comparisons can be made with United States IT salaries.
“The global demand for local IT talent has helped CPL place more people in the US over the last 18 months than ever before. We expect the demand, fuelled by increasing numbers of South Africans wanting to settle and work overseas, to continue at this rate in the future,” says Robinson.
CPL receives more than 25 requests a week from local contractors inquiring about international placements.
“Unmarried local IT specialists are motivated to settle overseas because of the attraction of foreign experience, while married people seek a respite from a crime-ridden society at home and want their children to receive an international education.”
But, according to Robinson, not all South Africa’s IT contractors have found the pot of gold. “The IT contracting and placement industry in the US and UK is more cut-throat and ruthless than in this country. Contractors seeking overseas placements should carefully investigate the reputation of the company they deal with, locally or internationally, because there are many horror stories in the industry.”
Placement firms in Europe and the US are sometimes uninterested in the person they are placing.
“These specific companies often do not provide basic information on the IT industry, salary movements and skills enhancement training in the industry.
“Every country has different work-permit, qualifications and experience requirements and it is essential for aspirant global contractors to gather as much background information as possible on the new city, salary and job market before leaving.”