Recent figures from recruitment analyst NTC Economics suggests IT directors will find it easier to find skilled staff over the coming months, thanks to an economic slowdown that threatens to flood the market with qualified job-seekers.

However, companies are also facing new restrictions on hiring staff from outside the European Economic Area (EEA). How much these will affect the IT staffing process is the subject of hot debate between industry experts.

The new points-based system (PBS) devised by the government replaces the old work permit scheme and obliges firms to prove that they cannot employ someone from the UK before they can offer a job to an overseas candidate.

The system features five tiers. Skilled foreign workers fall under Tier 2, which
is due to be introduced this autumn.

Under the new regime, workers from outside the EEA will have to prove they have enough points to qualify for a visa. Points will be awarded for English language competence, qualifications and prospective earnings, as well as for an applicant’s ability to support themselves during their first month in Britain.

The Statement of Intent for the PBS Tier 2 reads, “The future prosperity of the UK depends on building a Britain where people are given the opportunity and encouragement to develop their skills to the maximum.”

Marilyn Davidson, director of the Association of Technology Staffing Companies (Atsco), welcomed the move.

“It is only right that companies should be looking to the UK job market first,” she said. But she disagreed with the claim that the new system would have a big impact on the number of skilled foreigners coming to work in the UK. “The Home Office is only bringing in the legislation to simplify the process,” she said.

Davidson also said intra-company transfers (ICTs) would not be greatly affected. “It will be relatively easy for [foreign employees] to gain the 70 points needed to transfer to the UK,” she added, because they are already likely to have the necessary training and language skills.

Som Mittal, president of India’s National Association of Software and Services Companies (Nasscom), agreed. “If the system is implemented in the spirit that it is intended, it will ease the process for high-tech professionals to travel to the UK and ensure no visa misuse,” he said.

But other experts are not so sanguine about the impact of the new rules. Robert Chapman, chief executive of Firebrand Training, criticised the government for “making UK companies jump through hoops to prove that they’ve given preference to home-grown candidates”.

Meanwhile, Forrester analyst Alex Cullen described the legislation as a “step backwards”, and suggested that the amount of paperwork required by the new system could lead to increased offshoring. “The new immigration barriers will not stop businesses hiring Indians, it will just cause them to hire companies such as Tata rather than individuals.”

Nick Hobson, a solicitor at law firm Speechly Bircham, said the legislation would shift the administrative burden surrounding immigration from the Home Office to employers. Employers will have to constantly monitor staff and conduct more research into a professional’s history before they offer them a job, he said.

The certificate employees will be issued with under the new system will also have to be renewed more frequently than the old work permits, he pointed out.

And in contrast to Davidson, he argued that workers from outside the EEA are likely to view the new system as being too complicated, and may also be put off by the fact that it requires Tier 2 applicants to have funds of at least £800 to be considered.