Election Special: Public sector offshoring

Public sector offshoring to locations such as India is set to increase whichever party is elected

The question of which political party will drive the best strategy for the technology industry is a difficult one, and has no certain answer.

With this in mind, V3.co.uk has spoken with the three main parties on the most important tech issues, and compared IT strategies head-to-head.

We interviewed Labour MP and minister for Digital Britain Stephen Timms, Conservative MP and shadow culture secretary Jeremy Hunt and Liberal Democrat MP and shadow business secretary John Thurso.

This section will look at how the parties compare when it comes to public sector offshoring policies.

HM Revenue & Customs recently announced that it will start outsourcing IT work to India to save money on a contract with Capgemini relating to the department's ship tracking system.

The decision is a first for the department, and breaks the traditional public sector mould of restricting outsourcing partnerships to UK-based companies.

However, Labour has suggested that the government plans should not be a sign of the public sector embracing offshoring, and is not a move that the party would encourage in the future.

The Conservatives, on the other hand, have said that offshoring is worth considering if it can lower taxpayer costs.

Commentators have suggested that the flaw with this argument, but not one acknowledged by Labour, is that, while offshoring public sector work may reduce taxpayer costs in the short term, it could cause higher UK unemployment in the long run and therefore lead to more benefit claimants.

The Liberal Democrats declined to comment on the matter.