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Outsourcing boom creates worker shortage

Filed in archive Outsourcing News by Danny on December 28, 2005

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The outsourcing boom in India has led to a shortage of skilled workers which may send future jobs to competitors like China and the Philippines.

In a report by ABC, the shortage of skilled workers in the India is about quality not quantity. HR departments of outsourcing firms said that young Indians are unemployable because of their poor English. The report added that many of the 3.6 million yearly Indian graduateslinks are considered only average.

Related to this, a former call center manager said that if the industry has to pay increasingly higher salaries to retain staff then costs will rise. India will lose their biggest advantage: cheap labor

A study by McKinsey & Co. said that India's outsourcing industry will face a loss of 500,000 workers in the coming years.

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Related Entries:

BPO To Continue To Boom Despite Setbacks - 26 April 2005

Outsourcing boom continues - 17 August 2005

India faces high quality talent shortage - 24 September 2005

India Shortage: No Big Deal - 18 October 2006

Outsourcing: Not Slowing Down - 27 January 2007

No More Megadeals - 28 February 2007

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