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.
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  1. identicon
    Andy, 19 Feb 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.

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