Ashok Jayaram
OUTSOURCING-A MATTER OF CONCERN FOR INDIAN IT INDUSTRYThere’s a warning signal in the recent past on growing apprehensions amongst IT industry in India on the sustainability of outsourced business enjoyed in the past. Following are the reasons:
1. The bottom lines published by some of the IT majors bear testimony to this trend.
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ashjaya@hotmail.com
posted by padmaja @ 10:19 PM
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OUTSOURCING-A MATTER OF CONCERN FOR INDIAN IT INDUSTRY
There’s a warning signal in the recent past on growing apprehensions amongst IT industry in India on the sustainability of outsourced business enjoyed in the past. Following are the reasons:
1. The bottom lines published by some of the IT majors bear testimony to this trend.
There appears to be certainly a dent in the profits reported by them and main cause
attributed by them points out to the recession of US economy. They have followed the
wrong dictum of keeping ‘all eggs in one basket’, viz, fully dependent on US country.
Better choice would have been to spread their wings into other countries as well, like
the Far East, North and South America and the Europe. By adopting this method, they
can minimize the risk factor.
2. Drastic HR measures taken by them through various methods like reduction in the number of new recruits, reduction in annual increments, bonuses, deferment of date of joining in the case of candidates issued with letters of offer, curtailment of number of benches etc. This is a clear pointer to the fact that they are feeling the heat of the recession.
3. Uncertainties loom large over the political situation and the consequent anticipated change of presidential post. With the outcome of the elections in November, there is the general consensus amongst the public that prospective candidate, Mr. Obama, would like to fulfill his electoral promise of eradicating unemployment prevalent in US and attempt to revive the dormant economy. With this perspective in mind, Obama, is sure of discouraging outsourcing activity and India, being a major player in the arena, is sure of getting the blow hard.
4. Obama’s foremost task will be to revive the economy at the quickest possible time and in the process, he will ensure that forex reserves of US does not drain out through outsourcing, apart from creation of employment within the country.
Therefore, we need to take the warning signs seriously and evolve methods to overcome them.
ASHOK JAYARAM ACA
‘RAGHAVA RESIDENCY’, FLAT # 304, 6TH CROSS, VIJAYA BANK COLONY, BANASWADI, BANGLORE-560 043
MOB 934 285 34 70
4TH SEPTEMBER, 08
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