software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, March 21, 2006

Offshore Outsourcing India faces shortage of Labor

India, the leader globally for overseas services and problem solutions may be in danger unless it increases its supply of skilled and talented work force, as the demand of Indian talents is on the top of the list. The fact is Offshore Outsourcing India faces shortage of labor. Companies demanding IT Outsourcing services from India and its talents for many reasons like low labor cost, timely and dedicated and qualitative services, flexibilities and many more. Experts gathered at the meeting of NASSCOM, the India’s outsourcing group, stated that an initial skills and talents shortage was the biggest threat for the industry’s blistering growth. And it might also create lots of problems for the growth of the industry.

Help from Offshore Outsourcing India

Country might also face problems if the talent in the country is in short supply. Many companies who are actively taking the help from Offshore Outsourcing India for its talents also indicate that they would not mind in going wherever the labor pool is available for them as per their requirements. Other lower-cost destinations like Eastern Europe and China could become significant rivals for IT Outsourcing. Till this time, corporations generally focused to India to do work from customer support services to writing codes for software and for the purpose of designing chips for Offshore Software Development. But in present time it seems that supply of India is unable to match the sizzling demand of new companies for skilled, low-cost, English-speaking work force. This might create serious problems for the country.
The Information Technology industry employs 1.2 million workers, has glimmered a consumer revolution in the country, and is speeding up at more than 30 percent a year. The figures suggest that the country produces 3 million college graduates every year, including almost 400,000 engineers. But most of this manpower is fresh to the market and they are enforced to get some basic knowledge from the market to get settled in the competitive and professional market. Though in this huge country there is lots of raw talent, but not all of it is market-ready as experience is must in today’s competitive market.
Country is sensing the fear and government and industry are also struggling. Country has started a skill appraisal and certification program for entry-level employees for the back-office job; NASSCOM has plans to create such program for IT Outsourcing and problem solutions. To overcome the problems of the shortage of the manpower the government has also introduced computer classes and programs in schools. Companies have also started to work with academic institutions to meet the demands of the talented and skilled graduate students to the job market for Offshore Outsourcing India.
The supply shortfall is also raising head sharply in mid-level jobs, like software engineers. Salary packages in this area are also rising an average 20% per year, and in some segments the figure touches to 50% per year. All these are creating lots of problems for the success of the Offshore Outsourcing India.