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Companies out-sourcing jobs to developing countries like India could be having a negative impact on the British graduate job market, reports Silicon India.

As more and more low-level IT and marketing jobs are exported to countries with lower wage bills, less employment opportunities are available for students looking for their first job.

But the lack of entry-level jobs is causing a skill gap to open up with a resulting shortage of mid-level workers in the UK looking to climb the career ladder.

Mid-level wages in British IT are climbing as a result, according to Income Data Services (IDS).

New research by IDS shows that IT support workers received a pay increase of 13 per cent in the past year, while IT project leaders have seen their pay increase by 23 per cent in the last five years.

Ken Mulkearn, editor of IDS's latest report, said: "The sizeable pay increases we are seeing in mid-level IT support and technical roles are being driven largely by acute skills shortages."

Ann Swain, chief executive of the Association of Technology Staffing Companies, told the Telegraph that experience for mid-level jobs was increasingly difficult for graduates to get as entry-level jobs are sent offshore.

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