| manpower gap: (and solution)
By 2010, India will be teeming with a graduate pool of 17,73,000 in the
age of 20-35 years. So, would there be a problem in securing manpower?
No. Only securing “suitable manpower” will be a handicap. According to
McKinsey, only 10% of arts and science graduates and 25% of engineers in
India are suitable for employment by MNCs. By 2010, there would be a
shortfall of 0.5 million suitable talent in Indian IT-ITeS sector.
Take into account the industry’s “official’ attrition rate of 46% and
the projected manpower shortage gets even more grave.
....
The government will need to make higher education market oriented. There
is need to greater emphasis on research grants. FEZs (Free Education
Zones) should be set up close to IT/BPO hubs and global universities and
research institutes should be allowed to build campuses - without
regulatory requirements, suggests McKinsey.
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| architecture Knowledge Process Outsourcing at USD 90 per hour (!) that
| is a month's worth of salary for a graduate today.
However, to tap this, companies will need to build upon a global
delivery model to compete with MNC giants. Tier II players, whose
margins are 4-5% less than Tier I IT players, will need to specialise in
specific domains to tide over lower margins.Except for the top three
Tier II players, all have seen their margins declining over the years.
Joint ventures and acquisitions will be a good way to develop new
synergies.
To counter falling billing rates, BPOs will need to provide KPO kind of
work like legal, architect design outsourcing which offer rates as high
as $90 per hour.
But still, volumes will come from the low customer care and tech support
kind of processes. One of the biggest drivers of IT industry growth
around the world is the government spending on IT.
.....
http://www.financialexpress.com/fe_full_story.php?content_id=111733