Indian Oursourcing Industry Facing Shortage of Skilled WorkersFebruary 21st, 2006 Industry experts at the meeting of Nasscom, India’s outsourcing alliance, said on Thursday that skills shortage was the biggest threat to the outsourcing industry’s blazing growth. From ground zero I am observing several interesting effects of this shortage.
Revenues of Indian software industry to top $60 billion: NasscomFebruary 3rd, 2009 NEW DELHI - The Indian software and services industry is expected to grow 16 percent this fiscal and log revenues of $60 billion despite the global slowdown, a top lobby for the industry said Wednesday. The National Association of Software and Service Companies (Nasscom) said together with the business process outsourcing (BPO) sector, the revenues are expected to top $71.7 billion with a growth of 17 percent.
Wages at IT multinationals start melting downFebruary 27th, 2009 BANGALORE - Software multinationals in India have begun freezing wage increases, slashing salaries and postponing merit-based hikes, a study by Indian consulting firm Zinnov has found. 'Though Bangalore stands highest in its average salary for multinational R&D firms, followed by Pune and Chennai, the economic slump is causing undue pressure on them to retain compensation levels,' Zinnov director for advisory services C.S.
Nasscom pegs revenues of Indian software industry at $60 bnFebruary 3rd, 2009 NEW DELHI - The Indian software and services industry is expected to grow 16 percent this fiscal and log revenues of $60 billion despite the global slowdown, a top lobby for the industry said Wednesday. The National Association of Software and Service Companies (Nasscom) said in its report that together with the business process outsourcing (BPO) sector, the revenues are expected to top $71.7 billion with a growth of 17 percent.
Satyam to pay salaries for JanuaryJanuary 26th, 2009 HYDERABAD - IT bellwether Satyam Computer Services will pay salaries to its employees for January as scheduled from its internal accruals and receivables, the company said in a statement here Tuesday. The decision was taken at a day-long meeting of the six-member board, chaired by T.N.
India Inc demands stricter norms following Satyam scandalJanuary 6th, 2009 NEW DELHI - Shocked by the revelations of Satyam co-founder and chairman B. Ramalinga Raju that the software services firm had overstated profits and hidden liabilities in a Rs.40-billion scandal, leading industry lobbies called for stricter corporate governance norms.
'Satyam scam won't affect Indian IT sector'February 9th, 2009 NEW DELHI - The Satyam Computer Services scam is 'just a case in isolation' and it would not affect the image of India's IT industry, a Singapore diplomat said here Tuesday. 'What happened to Satyam came as a surprise and shock, but we are pleased at the speed of the Indian government that has replaced the board with very credible and highly respected individuals,' Tommy Koh, ambassador-at-large at Singapore's ministry of foreign affairs, said.
US move to withdraw tax breaks a matter of concern: FICCIFebruary 25th, 2009 NEW DELHI - The Federation of Indian Chamber of Commerce and Industry Wednesday expressed concern over US President Barack Obama's statement on ending tax breaks for outsourcing companies, saying 'protectionist measures could deteriorate the situation further'. 'Coming at a time when the global economy is going through a phase of slowdown and when countries need to work collectively, protectionist measures of any kind could deteriorate the situation further,' FICCI said in a statement.
Logistics outsourcing business to reach $90 mn by 2012December 28th, 2008 NEW DELHI - Third party logistics outsourcing business in India will grow to $90 million from the present $58 million by 2012, according to a study released Monday. Presently around 55 percent of Indian companies are outsourcing logistic services like supply chain management and warehousing, said the study by the Associated Chamber of commerce and Industry (Assocham).
Indian IT exports projected to grow in single digitMay 6th, 2009 BANGALORE - The Indian IT industry is set to witness a single-digit growth in software and services exports in 2009-10 because of global recession and lower technology spending in the US and Europe, a top industry body official said Wednesday. 'Software exports of Indian IT industry are projected to grow in single digit this fiscal due to economic slowdown and lower tech budgets in major markets like the US and Europe.
Satyam board in talks with banks, financial institutionsJanuary 16th, 2009 HYDERABAD - The government-appointed board of directors of the fraud-hit Satyam Computer Services Saturday said it was engaged in discussions with banks and financial institutions to address the issue of liquidity and assured that it would take all steps to pay salaries of the employees on time. The board, which met here for the second time in six days, left the appointment of the board chairman to the government and said the search for a chief executive officer (CEO) and chief financial officer (CFO) was still on.
Satyam board meeting underway, focus on firm's financesJanuary 16th, 2009 HYDERABAD - The government-appointed directors of fraud-hit Satyam Computer Services began a meeting here Saturday with the focus on how much the company immediately needs to pay salaries and meet other expenditure and on finding a chief executive officer (CEO) to run its day-to-day operations. Satyam, India's fourth largest IT company, has been without a CEO and a group of senior staff members are running the show since Jan 7, when founder-chairman B.
Post-Satyam, IT industry faces tough time, says diasporaJanuary 7th, 2009 CHENNAI - Satyam Computer founder-chairman B. Ramalinga Raju's admission to committing a Rs.70-billion ($1.4 billion) financial fraud will raise questions about the the level of corporate governance in India, feel persons of Indian origin (PIO) at a conference of the Indian diaspora here.
Satyam board knocks on banks' doors, sends out positive signalsJanuary 16th, 2009 HYDERABAD - The government-appointed directors of the fraud-hit Satyam Computer Services have started talks with banks to raise funds for salaries and other expenditure, while customers have assured continued support to the company, the new board said here Saturday. Meeting for the second time in six days to save the country's fourth largest software outsourcer, whose financial fraud of Rs.70 billion (Rs.7,000 crores/$1.43 billion) was described by Prime Minister Manmohan Singh Saturday as a blot on India Inc., the six directors said 'all efforts are being made to ensure that the associates (employees) are paid their salaries on time'.
Intel Announces 1 Billion Indian InvestmentDecember 3rd, 2005 Intel, world's largest chip maker, plans to make an investment of $1 billion for its Indian operations. The firm will spend $800m on boosting its research and development operation, with the rest of the cash being used to finance investment in firms.
8 Comments | 
Email this Article
Loading ...
June 26th, 2006 at 11:09 am
If the job market is still hot then it looks like rising salaries aren’t negatively effecting multi-national investment in India. Companies are pulling out because the competition for staff is too hot, not because of any inherent problems in the market. They just can’t save/make as much money as they would like. If the competition eases - they’ll be back in. But I don’t think that’s desirable.
It’s harsh for smaller companies that have to keep up with the wages the mutli-nationals are offering. On the upside, I guess that means there is a fast-growing tech savvy local market into which you can sell services.
On the whole though surely it’s better that Indian workers are able to share in the wealth created mutli-national investment and the off-shoring trend. In the long-term that will benefit the Indian economy much more than the multi-nationals siphoning the profits back to the US and Britain.
Also, you could look at IBM or InfoSys as training programmes. There may be a skills shortage and quality shortage now (as there was in the West during the boom) - but the long-term effect is a lot of new people will acquire cutting edge tech and biz skills.
June 27th, 2006 at 1:16 am
My friend,
If you do a lil bit of reasearch you will find that Apple was virtually present in India/B’lore (it was taking services from Birla Transworks and one more, sorry if I am mistaken in name).
Progeon too had been taking software services and has promised continuing it from AZTECSOFT.
Yes, the salaries have increased due to 2 simple reasons, 1. Demand/Supply mismatch and 2. Cost of Living in cities like Bangalore.
I would not fully agree with the quality of man power because if they weren’t good, the would not have been employed at the first place. The proof for that is the entry into a good software co. Ask someone with less calibre to apply and clear the rounds of tests/interviews and get a fat packet.
Alright, as far as your (and others like you, who wants quality man power at lower costs than existing) requirements are concerned, I have a suggestion. Try freelancers/consultants. They are the same quality manpower but would work on a contract basis. They would also do your work with quality and time (of course not as timely than what they would take if employed full time) at much lesser costs.
I hope this helps.
June 27th, 2006 at 4:37 am
Sure it is demand and supply. It is the big boom of outsourcing which is artificially increasing the salaries. And yet such an artificial increase is always fraught with danger. During the dotcom period even the most inefficient people were hired with top pay. In the end it was payback time. I am afraid the same might happen in India, unless we are careful.
Uncontrolled expansion is always fraught with danger.
> who wants quality man power at lower costs
I want quality manpower at right cost, cost which is proporationate with his capability and quality, no more no less.
As for hiring consultants, I ahev tried that route too. More on it later.
June 28th, 2006 at 5:12 am
If this is the case then why IBM and accenture are expading their man power in India. Are these companies running with poor man power? I don’t think so.
September 17th, 2006 at 8:04 am
Well..
I do agree to certain extent with the lowering standards of Fresher Recruitment. Companies like TCS, Infy, Accenture & IBM are blindly recruiting people in heaps.. and most of them are not from Top Notch Engg Schools.. and do not even have a sound Academic record either..
Not sure how this will work for betterment of Indian IT Industry as a whole.. but it definitely pinches to see poor skilled people getting selected.. where experienced people who got through all the difficult stages initially have to deal with the lack of skills of these fresh recruits. I’ve experienced this myself where my Team Members are mostly freshers and it gets really hard to get output from them and in the end [B]Productivity & Quality[/B] is comporomised upon..
September 19th, 2006 at 6:27 am
Yes. Salary is high in India now days.
November 26th, 2006 at 1:43 pm
I agree completely with this.Their is no loyality towards the company they are working for.People are just moving around for small hikes also.Moreover the Quality of manpower and the HR practice is terrible in Indian IT Industry.
To Sunil Kumar Gupta, Do you think IBM & Accenture are running the show in India with Quality manpower.Its just limited for their advertisements.Some Projects are going heywire or the projects run with just some talented hands, other resources being mere spectators.Poor Euro/American clients cant complain about these under talented indian resources due to their politeness(or any other).
December 13th, 2006 at 1:19 am
I can understand the pains of CEO/Manager of SME Indian IT companies from Angsuman Chakraborty words particularly about the quality of work.
It is the 20/80 (20% of quality man power and 80%of lack of quality manpower)principle thats is going on here in the Indian IT Industry.
Though it is considered to be not good to the overall industry but in long run one can expect this to increase to 80/20 and yes most of the companies are working towards achieving that. This can be visualised by the updated training procedure and huge investments in training by most of the companies.
At the same time SME should give Salary/Rewards/Bonus/Training to the quality profressionals who are really pulling the strings of the company otherwise biggies will hunt them.