Indian graduates running dry
As demand for staff rises, the Indian labour market is facing difficulties churning out enough graduates.
Kiran Karnik, president of Nasscom, India's software industry body, says the outsourcing industry will hire 20,000 new workers next year and predicts demand is set to double or even triple by 2009, reports The Times.
Nasscom says that the software sector faces intensifying competition for the best students from the financial services industry. At the same time, the country's teachers are said to be abandoning ship for more lucrative financial services posts, leaving no one to teach the next generation.
Banks like Credit Suisse, Deutsche Bank and JPMorgan have announced plans to increase technology and back office hiring in India this year.
India's IT outsourcing industry may yet suffer another blow, in the form of Vietnam's rising appeal. According to IT recruitment and outsourcing specialist Harvey Nash, the country offers lower prices, less staff turnover and greater stability than rival Indian locations.
Paul Smith, global managing director for IT outsourcing at Harvey Nash told IT Week, "Developers' salaries are 15% to 20% lower than in India with 9,000 to 10,000 [science graduates] coming into the market each year."
