A well thought-out, pragmatic article. But I was spiralled downwards by the last two lines as much as upwards by the article. How can you assume to keep on achieving 15% salary hike every year, as you are approaching to diminish India's cost advantage? As the cost advantage tends to level out, salary hikes decrease, which increases the levelling out period. The article also mentions India being service sector and not doing the "thinking" for customers. It would be interesting to see if India's cost advantage disappears being in that mode. For India's cost advantage to disappear, the mode has to alter at some point of time.
A well thought over article. But the fact is that the author has assumed our economy is going to be the same for the next few years. But i believe, even we are heading to recession now. We may not last long till 2015 .. It could well be within the next 2010 or 2011 .. The rise in dollar value should have been countered with drop in salaries, but instead the salaries went up ! The hiring strength from campus is spree ... All these are only adding to the existing woes ..
It%u2019s a very good article with vision on the Indian IT industry. Most of the blogers here talking about the growth of Infosys, TCS, Wipro etc, but not one is talking about how the top class Indian engineers are dumped by this companies. I have traveled around ASEAN countries and some extend to Europe, I never see any of this Indian top class engineers recruited there in top position whereas those who are working in some good position are with normal education like B,Sc, M.A Etc and migrated there with their own risk since they are been thrown out by our Indian IT Giants due to their education. I don%u2019t think these companies really need a high class IIT, BE class holders to do the coding and service industries. This has to be changed so that the merited students can able to come up with process to set up the RND to launch our Indian made products.
RE:Brain Drain by Indian IT Giants
by Rajkumar Singh on Mar 15, 2008 11:43 PM
hi - u r right - manpower forms a big part of resource in IT so these companies hire and then try to distribute work, train etc - ultimately the qualified guys go on to take lower jobs abroad that of maint and coding suspervisors etc - the other set of workers who skilled but lack degrees in computers jor IT field are pushed to the brink - they go job hopping - the IT companies need to respect the ones who earn the company it sales and profits
RE:Brain Drain by Indian IT Giants
by shrimant shanbhag on Mar 13, 2008 11:39 AM
Mr. Kingchn.. U have hit the right spot with the very basic fundamentals of hiring attitude by the Indian IT cos. I agree completely with your views as i myself have observed the fact stated by you. in fact these it cos are recruiting people without any basic logic and even spend 9 months..or even a year training them..and even mckssey has suryed that only 25% of our educated work force are employable.
India's cost advantage disappears by 2015. Then what?. No problem India Inc will Emerge as a global Brand by 2015. India recorded the largest number of merger deals in 2007 record mergers and acquisitions valued at over $65 billion. Tata group, paid $11.1 billion to acquire Anglo-Dutch steel maker Corus Birla Hindalco paid $6 billion that to acquire Canadian aluminium products manufacturer Novelis The two (steel and telecom) garnered $14.9 billion and $11.3 billion worth of deals. Essars acquired Canadian firm Algoma Steel for $1.55 billion. Tata power sector bought significant stakes in two Indonesian groups, PT Kaltim Prima Coal and PT Arutmin Indonesia, for $1.1 billion. Vijay Mallya-led United Spirits bought Scotch whisky distiller Whyte and Mackay for $1.18 billion. Suzlon Energy has taken over the German firm Repower Systems for $1.7 billion. Mmergers and acquisition deals in India during 2007 was $68.32 billion, up 143 over last year's $28.16 billion.
r u mad? someone with 4 years experience in London gets %uFFFD35-40K pa which is equivaliane to Rs. 28-32 lakh pa. In India for 4 years experience in IT, one gets Rs 4-5 lakhs. Also working hours in UK are 8 hours per day, in India they are 12 hrs a day and most of the times people have to work on weekends too.
India was ruled and looted by British because of betrayers in this country who look only for immediate and narrow minded benefits. I think the author who wrote this in Forbes also has the same gene in her blood. She is happy to see her county's young people getting laid off and wants them to be beggars in the hands of politicians and blood sucking industrialists. She would have got paid a huge money for writing such an article. Unfortunately, we have to bear all this white men as*lickers. Just imagine what would have been the state of millions of youngsters working in IT companies and BPOs. They must be working either for a small petty cash salary or would have become extremists attracted by naxalite theories. Is this what she want. The reality is her dream is not going to happen simply because US people are not ready to work like Indians for 50 to 60 hours. They are not used to it. The corporates in US will see all the hullabaloo get subsided by the end of the US election,because they are the one who really run the govt.
RE:Betraying slave mind
by Raghu Chundi on Mar 09, 2008 04:58 PM
The corporates in US will see all the hullabaloo get subsided by the end of the US election,because they are the one who really run the govt.
Sir, Just remember it is the Economy that runs corporates and not the Corporates that run the govt. The economy is about to take a beating and you too have to bare the burnt of it.
RE:Betraying slave mind
by hari ray on Mar 11, 2008 12:32 AM
Smart Investor, why can't you have intelligent and meanigful discussion without being disrespectful to others?
RE:Copy-Paste
by ranjit singh on Mar 09, 2008 03:48 PM
so how does it matters.. dont u see 2 TV channels giving d same news whole day?.. if u dont have a view point...dont waste energy in writing anything just for the heck of it..
The salaries in India still remain at extremely low levels compared to the west. So the salary increases have to be there.What India needs to to is to increase productivity and do value addition than being a low cost base. Because the low cost base erodes. Having said that , there are not too many countries that have a big pool of literate English speaking people willing/able to do this work.
The outsourcing is not done only for cost advantage. Yes, its a factor but over last decade or so the Technology has penetrated to a much deeper facets than ever before. With Internet a whole new economy (which is definitely not a bubble) has evolved. Mobile devices, smart devices, PC in every home, etc means a much wider need for IT professional.
The developed nation just don't have a workforce to provide this support.
These nations had outsource low-end works so that their local workforce can focus on much high end high value skills and continue to rise high on the value chain. ie. More high-end Research, etc.
Thats the reason why product and services like Google, facebook, ebay or SalesForce, Apple etc are coming from these nations and not India.
What India has to fear not the demise of Outsourcing, as this Industry is bound to grow, but reduced business opportunity due to competitor countries like Philipine, Vitenam, Spain, etc.
RE:Not so easily
by Hans Solo on Mar 09, 2008 03:29 PM
More over, for IT Pro its bliss in any case, as when the outsourcing cost rises very high, the developed nation would bring these very ppl onsite, like in 90's.
These nations just dont have a workforce to do this job. :)
