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Posted by on Apr 7, 2007 in At TMV | 6 comments

India’s Achilles Heel…?

…Two decades into India’s phenomenal growth as an international center for high technology, the industry has a problem: It’s running out of workers, writes Tim Sullivan, Associated Press Writer.

“There may be a lot of potential — Indian schools churn out 400,000 new engineers, the core of the high-tech industry, every year — but as few as 100,000 are actually ready to join the job world, experts say…

” ‘The problem is not a shortage of people,’ said Mohandas Pai, human resources chief for Infosys Technologies, the software giant that built and runs the Mysore campus for its new employees. ‘It’s a shortage of trained people.’

” ‘This is really the Achilles heel of the industry,’ said James Friedman, an analyst with Susquehanna Financial Group, an investment firm based in Bala Cynwyd, Pa., who has studied the issue…”

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Copyright 2007 The Moderate Voice
  • Their other weakness is an atrocious infrastructure in most of the country. In industries that depend utterly on reliable power and communications they are spending huge amounts of their own funds that they don’t have to spend in the U.S., Canada or Europe.

  • Why, they might have to outsource work to the USA!

  • ‘Shortage of trained people’?? When was the last time these IT companies hired ‘trained people’ from Engineering Colleges? All these years, every engineer who joined these companies had to go thru a formal training before working on actual projects! Nobody was an exception!

    I think to call it a ‘shortage of trained people’ is slightly misleading. After being closely involved in this industry for 12 years, I think it is the shortage of “talented and bright Engineers”.

    Back in 1997, these IT companies were recruiting Engineers in hundreds. These days, Infosys alone recruits more than 25000 engineers a year! Now add the demands from TCS, Wipro, IBM, Accenture, Satyam and other equally big players in the scene. By any calculation, it’s really hard to recruit so many thousands of ‘well qualified’ engineers every year in any country on this planet.

    In other words, India too is nearing its saturation point!! The IT companies can’t lower their standards by making compromise on the quality of engineers they hire. Remember, ‘majority’ of these 400,000 engineers come from relatively unknown institutions that lack god facilities and are below ‘average’!

  • How about tapping into other countries?

  • In the U.S. the definition of trained seems to be having exactly the correct skill set it takes to already know every software package that the company uses. The ability to program and learn any language doesn’t count. Everything I’ve ever done with computers, which includes network management, programming, building and maintaining PCs has been self-taught. I can learn anything and in fact can teach myself anything so long as I’ve got a book and some time. But since I only have 25 years experience and an AS in CS I can’t get a really good job in the field.

  • Sure – they can tap into other countries. Here is the catch – the whole IT industry in India is built based on low cost labor. If they start hiring engineers at higher cost, the ‘offshoring’ will lose its attraction!
    In fact, you are already seeing Indian companies setting up shos in China for tapping their low cost engineers so they can keep this model going!

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