By Nitin Kalani
Mumbai, India
The global meltdown has affected the health of many sectors and outsourcing is no exception. Tough the BPOs offering non-technical services are still hiring in large numbers, the average salary offer has gone down. The IT outsourcing is the place where the heat is being felt with companies triming discretionary IT spends.
The IT industry is forced to go slow on their hiring, infact some of them have axed their headcount. However, the IT infrasrtucture management and maintainance services have remain unaffected. That's because it is a compulsory cost centre. It can't be avoided.
Do you think these happy days will last for long? Not really. High labour attrition, global recession, poor infrastructure and lack of data protection laws could derail India's booming outsourcing industry. However, lets look at this from recession point of view.
The state of the economy in India is far better than other global economies. The US and UK are the major outsourcing countries. However, there's major unemployment in these countries. There could be a major backlash in these countries. Its very difficult to pass a law to stop outsourcing. However, the governments in these countries might resort to fiscal policies discouraging outsourcing and thereby creating an environment for companies to generate opportunities for localites. Atleast thats what has been on the agenda of the newly elected Barack Obama. So, inspite of the cost and other advantages, we might see jobs being diverted back to respective countries.
If that happens there could be major unempoyment in India as IT and ITES are the major employers after real estate and retail. The GDP may fall due to fall in purchasing power. It would be a grave situation especially if the meltdown continues. Lets hope that doesn't happen. Lets have a wait and watch approach.
Mumbai, India
The global meltdown has affected the health of many sectors and outsourcing is no exception. Tough the BPOs offering non-technical services are still hiring in large numbers, the average salary offer has gone down. The IT outsourcing is the place where the heat is being felt with companies triming discretionary IT spends.
The IT industry is forced to go slow on their hiring, infact some of them have axed their headcount. However, the IT infrasrtucture management and maintainance services have remain unaffected. That's because it is a compulsory cost centre. It can't be avoided.
Do you think these happy days will last for long? Not really. High labour attrition, global recession, poor infrastructure and lack of data protection laws could derail India's booming outsourcing industry. However, lets look at this from recession point of view.
The state of the economy in India is far better than other global economies. The US and UK are the major outsourcing countries. However, there's major unemployment in these countries. There could be a major backlash in these countries. Its very difficult to pass a law to stop outsourcing. However, the governments in these countries might resort to fiscal policies discouraging outsourcing and thereby creating an environment for companies to generate opportunities for localites. Atleast thats what has been on the agenda of the newly elected Barack Obama. So, inspite of the cost and other advantages, we might see jobs being diverted back to respective countries.
If that happens there could be major unempoyment in India as IT and ITES are the major employers after real estate and retail. The GDP may fall due to fall in purchasing power. It would be a grave situation especially if the meltdown continues. Lets hope that doesn't happen. Lets have a wait and watch approach.
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