The looming labor shortage
Hello,
It looks like India’s BPO boom would have to face reality rather sooner than expected.
The labor shortage, which I have been talking about earlier is now catching the attention of mainstream media.
This article in the CIO Today magazine carries highlights from the Nasscom McKinsey study about the pitfalls of the scenario going forward.
The study carries some strong messages if India needs to keep the momentum going.
Meanwhile the fight for scarce resources is on amongst the players who have already landed here.
This results in shortage even to the domestic industry and other sectors. For example, a NY based law firm setting up operations here in Mumbai has taken about 300 Lawyers and para legals at salaries that are double what the market pays for such skill sets. This no doubt results in a shortage of lawyer for law firms who were themselves otherwise overburdened by the growing economic activity.
Venkat
December 18th, 2005 at 7:19 am
Hi Venkat,
I came across your blog from Feedmap. I found you in the neighbourhood and just checked your site. The blog makes an interesting read, and I shall be checking it out often.
I liked the article about the ominous IT labor shortage that is being predicted. It is not only IT that might bear the brunt, but by 2008 even BPO employees would be hard to find. The primary reasons attributed are the rising attrition rates, remuneration packages, and more important - the densely packed companies in one low cost center. Bombay, Chennai and Bangalore are already saturated with BPO firms. The need of the hour is to find fresh and untapped talent at other places in India like Chandigarh, Indore, Nagpur et al. Just a thought process.
Regards,
Gagan.
http://blog.gagankaul.com
January 29th, 2006 at 3:47 pm
Hi,
I came across your blog and found it quite interesting. If you have any other news about BPO and KPOS in India or Can you suggest any useful site to me about this topic. My blog is http://spicykolkata.blogspot.com