Is It Beginning of the End of IT Outsourcing?

[S Class]

The news about IT industry is not very good, approx 1.5 lacs IT professionals are sitting on bench who are working with the top 3 Indian IT companies. But completely eliminating outsourcing will never help US companies. These discussion starts after every 4 - 5 years specially in the US election year. Yesterday itself there was a townhall with our SR. VP and we were discussion the same thing, these days indian IT companies are very focusing on spending the right amount at the right place, moreover these companies should not only rely on US market and should also focus on Europe & Asia.

20-30% is dream that will never come true now. If we get 15% we think we are more than fortunate now.

+1000 to what you said Mukesh. It companies should look for more projects in same country. This will help in country's development as well. But all they run after is $$$$$$$ not INRs...

+1 to both of you.
And why not focus on Europe ? Hire IT guys having skills in foreign language.

And forget all these things, I always ask my friends in IT :-

Over 20% persons in Microsoft are Indians, co-founder of Sun Microsystems is Indian, co-founder of Intel is Indian & we have lot of people even in Google.

Then why can't Indian IT company create OS which can take on Windows head on at 1/3rd the price ?? Why work for others, when you can do something on your own ?

 

[dharmesh]

+1 to both of you.
And why not focus on Europe ? Hire IT guys having skills in foreign language.

And forget all these things, I always ask my friends in IT :-

Over 20% persons in Microsoft are Indians, co-founder of Sun Microsystems is Indian, co-founder of Intel is Indian & we have lot of people even in Google.

Then why can't Indian IT company create OS which can take on Windows head on at 1/3rd the price ?? Why work for others, when you can do something on your own ?

People who have established these companies/firm have gone out of their comfort zone and have wroked hard day in and day out to reach where they are now. And IT people for working less are being paid more so they are getting what they want (or more than what they ever expected), so why to leave comfort zone to something extra ordinary. Let it go ahead the way it is going. . And with more money comes more spending power. Earlier person who loved vada pav now says, vada pav is so unhygienic, we will go to McDonalds and have burger. These is the sole reason for the inflation going higer every year. I personally think that It professionals have played major role in high inflation today.

 

[autosafari]

People who have established these companies/firm have gone out of their comfort zone and have wroked hard day in and day out to reach where they are now. And IT people for working less are being paid more so they are getting what they want (or more than what they ever expected), so why to leave comfort zone to something extra ordinary. Let it go ahead the way it is going. . And with more money comes more spending power. Earlier person who loved vada pav now says, vada pav is so unhygienic, we will go to McDonalds and have burger. These is the sole reason for the inflation going higer every year. I personally think that It professionals have played major role in high inflation today.

You have a point here.

Eventhough inflation is not directly linked to IT industry. (Inflation figures are from an out dated calculation and statistics regime - its another story)

However IT industry is responsible for pushing up prices and living cost in many Cities in our Country. In places like Bangalore, everything is priced high and rent goes on increasing whenever IT is doing well and prices stabilize or come down when IT Outsourcing slow down

 

[dharmesh]

You have a point here.

Eventhough inflation is not directly linked to IT industry. (Inflation figures are from an out dated calculation and statistics regime - its another story)

However IT industry is responsible for pushing up prices and living cost in many Cities in our Country. In places like Bangalore, everything is priced high and rent goes on increasing whenever IT is doing well and prices stabilize or come down when IT Outsourcing slow down

One of the best example in New Bombay (kopar Khairane, Airoli, Vashi, Kharghar, etc). The house rates for these areas have gone sky rocketing and these are the places where people dint want to stay when it was build. But now IT park in Ghansoli have changed the cards for property builders in these areas. No doubt that it is good sign that those area are getting better infrastructure (better than western suburbs in mumbai), But at higher rates, where normal people stay there in rented room because he dont have enough money to buy new house and can't leave the house as his workplace is nearby to house.

P.S. : If any IT professional here is getting pissed off because of me then I dont care, I am saying truth and FYI I am myself an IT Professional.

 

[threeace777]

I got a call from TCS few other companies in last week all hiring
It depends which industry or product line you're working with.
I mean again matter of demand and supply. if there are only 10 customers requiring a software with 100+ companies in race for the tender (those 100+ companies have 10 to 20k software engineers waiting for the same project than there's definitely going to be a situation with someone sitting without a project.

 

[visran]

Another good news for Infosys:
Infosys bags Rs.700 crore order from India Post.Infosys Thursday said it has bagged a Rs.700 crore deal from the Indian government's Department of Post to enhance its core banking and insurance services in 150,000 post offices across the country.

Infosys bags Rs.700 crore order from India Post

 

[ERTIGA_ZMR]

You have a point here.

Eventhough inflation is not directly linked to IT industry. (Inflation figures are from an out dated calculation and statistics regime - its another story)

However IT industry is responsible for pushing up prices and living cost in many Cities in our Country. In places like Bangalore, everything is priced high and rent goes on increasing whenever IT is doing well and prices stabilize or come down when IT Outsourcing slow down

It's not like that I guess, imagine guys these days inflation is high through out Nation and Govt has to be blamed not IT professionals. How many IT people will buy flats worth 1 Crore but a black money earner can buy it easily.

I will just quote an example, in my home town Patna in 2004-2005 one Kathha (1365 sqft) used to cost around 10 Lakhs but now it costs around 50-60 Lakhs.There could be several reason but what I feel that since development happened a lot in Bihar so it attracted the investors. So inflamtion is not much related to only to IT guys as there is no IT firms in Bihar. This is the case of all commercial cities (Nagpur, Bilaspur, Surat, Ahmedabad, Ranchi etc etc.) irespective of presence of IT industries.

Yes Property price will shoot up once there is an IT Park but what you say the property price near Maruti Factory? It's very easy to blame IT Industry but at same time we should not forget that it brings so much foreign revenue and has generated so many jobs. Don't you think if a paricular group earns a lot then it also helps in indirect employment or earning oppurtunity.

 

[dharmesh]

It's not like that I guess, imagine guys these days inflation is high through out Nation and Govt has to be blamed not IT professionals. How many IT people will buy flats worth 1 Crore but a black money earner can buy it easily.

I will just quote an example, in my home town Patna in 2004-2005 one Kathha (1365 sqft) used to cost around 10 Lakhs but now it costs around 50-60 Lakhs.There could be several reason but what I feel that since development happened a lot in Bihar so it attracted the investors. So inflamtion is not much related to only to IT guys as there is no IT firms in Bihar. This is the case of all commercial cities (Nagpur, Bilaspur, Surat, Ahmedabad, Ranchi etc etc.) irespective of presence of IT industries.

Yes Property price will shoot up once there is an IT Park but what you say the property price near Maruti Factory? It's very easy to blame IT Industry but at same time we should not forget that it brings so much foreign revenue and has generated so many jobs. Don't you think if a paricular group earns a lot then it also helps in indirect employment or earning oppurtunity.

No one is blaming IT industry mate, No doubt IT industry have brought lot of employment and forieng revenue. But we are (atleast I am) trying to debate here is what IT people are paid way above the normal people get. And with more money comes in more spending power. No is saying that one should not lift his/her own standard of living. But yes where I was content with only 1 jeans pant yesterday, Today whenver I go to shopping I buy atleast 2-3, although my original requirement was only 1. Same is case with car. My original requirement was just a car, but I ended up buying PUNTO which I never thought of. This is just because my spending power have increased drastically. I have one home and shop in Grant Road (South Mumbai), 1 house in Kandivali and now again I bought one more house in Dombivali. This is because I have money I want to spent it. Although practically I require only 1 home..

See here I am not taking any example, Whatever I have written is about me and yes I am IT professionals. I eat, sleep, hang out with IT professionals and I know their attitude. But I dont want to finger out to any one that's the reason I wrote my own situation here. And the situation I am currently in will not only be restricted to IT professionals, this is the case everywhere.

 

[vaibhav]

Guys
Whats your take on KPO and CFA degree ? Is CFA degree good enough for getting a good career in India?

 

[dharmesh]

Guys
Whats your take on KPO and CFA degree ? Is CFA degree good enough for getting a good career in India?

Is this relevant to this topic?

 

[vaibhav]

Dharmesh actually KPO is also outsourcing just like IT
Sorry if i am wrong

 

[visran]

Found this interesting article:

Indian IT companies among 10 worst paymasters in world

Indian companies are among the world's 10 lowest paying employers in the IT space, with their mid-to-senior level staff getting an average salary of USD 38,767 (about Rs 21.5 lakh) per annum -- less than one-fourth of the IT pay package at globally top-paying Swiss firms.

Salaries in the IT sector of Switzerland are the highest in the world at an average of USD 168,211 (about Rs 93 lakh) per annum, as per a study titled 'World wide IT Salary 2012'.

The study, conducted by global recruitment service provider MyHiringClub.com, has ranked India at eighth spot among 10 worst IT paymasters globally. On the other hand, Switzerland stands at the top spot among the top-paying nations in the IT sector.

The study, which was conducted in August this year, took into account the average salaries for people with four and more years of experience for the Indian and other companies.

The report compared the total annual cash compensation and total remuneration information for IT staff in more than 6,000 companies across 40 different countries and found that employers in western Europe are the best paymasters.

It also found that compensation in developed countries focus more on variable factors, such as bonus schemes, to attract staff. At the same time, the emphasis remains on cash compensation in the lower-paying countries.

"Experienced IT managers are highly sought-after in India and there is strong competition to attract and retain skilled employees. MNCs rely heavily on Indian IT managers, so they need to ensure their pay is competitive.

"Although pay in Asia and Eastern Europe tends to be much lower, it would be difficult for firms to outsource the IT manager role to these regions. Instead, we may see a migration of IT skills from lower paying nations to places in Western Europe and North America," MyHiringClub.com CEO Rajesh Kumar said.

Interestingly, IT managers in India fare better than their counterparts in neighbouring China, where the average annual compensation package were lower at USD 38,624. In addition, IT employees in India, scored better than their peers in Bulgaria, Vietnam, Indonesia, the Philippines, Thailand and Malaysia, where the average annual salaries were even lower at USD 23,745, USD 29,831, USD 33,768, USD 33,965, USD 34,107 and USD 36,790 respectively.

Among the best IT salaries paying countries Belgium bagged the second position with an average salary of USD 144,980, followed by Denmark (USD 136,542), the US (USD 128,632) and the UK (USD 127,890).

Indian IT companies among 10 worst paymasters in world