by Joseph Weisenthal

More Labor Woes At Indian Outsourcers

from the worker-shortage dept

We've written in the past about various problems brewing at Indian outsourcing firms that are increasingly facing talent shortages and competition from lower-cost competition. Om Malik has an interesting roundup of a fresh set of articles all pointing to continued troubles at these firms. The big problem continues to be the shortage of labor, which is the result of a few different factors. Many employees who got their start at one of these outsourcers are now going to business school, hoping to move up to higher value work. Furthermore, these jobs aren't viewed as highly by college graduates as they used to be. Increasingly, talented coders have the opportunity to work directly for the likes of Google and other international tech firms. And there remains a shortage of top-quality education opportunities, preventing many from getting trained and choking off the overall pool of labor. None of this necessarily spells doom for these companies. One way they can cope is by moving up the food chain, offering services of higher value than simple outsourcing or call-center work. And, of course, they don't have to limit themselves to Indian employees, they can hire talent from the US as well.

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    Lewis Salem, Feb 19th, 2007 @ 9:23am

    "talent shortage".

    Those firms are having a "talent shortage" because they don't pay well, then cry to us when their workforce becomes educated. I'm glad that Indian IT workers are advancing their careers.

    Can something finally be said for loyalty in our field? I'll believe it when I see it! :)

    reply to this | link to this | view in thread ]

  2. identicon
    Dave, Feb 19th, 2007 @ 9:53am

    talent shortage.

    Will the Indian firms offer enough pay to draw technical labor from the U.S. I thought the main reason many big firms were outsourcing call centers, etc to India was cheaper labor.

    reply to this | link to this | view in thread ]

  3. identicon
    Tashi, Feb 19th, 2007 @ 10:40am

    Re: talent shortage.

    That's one of the myths involving (sometimes hidden) costs that's quickly being shot down. The savings isn't that great and come with their own hosts of problems.

    reply to this | link to this | view in thread ]

  4. identicon
    jameth, Feb 19th, 2007 @ 10:50am


    Yea that is just great, lets not only outsource the work, but then lets actually outsource our own pool of technical labor as well!

    There is something very wrong with this scenario...

    Mabey we should just ban all tech work in the USA.

    reply to this | link to this | view in thread ]

  5. identicon
    Anonymous Coward, Feb 19th, 2007 @ 10:52am


    anyone who has ever done any work in outsourcing can tell you everything that you read in that article - the indian resources complain about their wages and the mundane work every day. eventually, wages will catch up and their mundane work will be gone - to china.

    reply to this | link to this | view in thread ]

  6. identicon
    bob, Feb 19th, 2007 @ 10:54am

    Cheaper Labor?

    Its cheaper labor only in terms of dollars. In rupees most firms pay quite enough. for help desk people and tele-marketers.

    reply to this | link to this | view in thread ]

  7. identicon
    Andy, Feb 19th, 2007 @ 3:33pm

    Re: Cheaper Labor?

    Yes, I believe they are paying well if you compare in Indian currency. Any one and any where obviously it makes sense to reduce costs with cheap labor who has talent and works hard. Once it's saturated and inflation peaks, they will dump if they find another source. That's why they call it as competition.

    reply to this | link to this | view in thread ]

  8. identicon
    Known, Feb 19th, 2007 @ 11:48pm


    85% of people in India are desperate working slaves in an informal economy and their lives oscillate between fear and frustration.

    The remaining are always in search of collusion mostly in the form of caste to enhance their wealth.

    reply to this | link to this | view in thread ]

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