Already hit by the dollar forex exchange rate decline against the rupee, the new technology investments are either halted, frozen or completely scrapped by the various firms belonging to various sectors for which the Indian IT laborer used to be the “best talent pool” and “highly knowledgeable workers”. It appears that times may soon be gone where the IT employees used to command good enough salaries to provide the highly creditable software products and support services.
A recent study by Pierre Audoin Consultants (PAC), primarily targeting UK's top IT service providers, reveals that IT centers are now being setup in the new offshore centers of the world - China, Morocco and Hungary. These are the countries that are the new locations of choice to set up offshore sourcing centres.
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As per the study, since January 2007, the UK based offshoring service providers have opened as many as 21 different offshore centers in various parts of the world and majority of them have gone to China, remaining to Morocco and Hungary. Only 2 out of 21 centers are setup in India, that too in the early 2007, when the dollar-Rupee ratio was much much favourable for the dollar. What is the status of these centers, is still not known, but if these are the signals, then definitely the Indian IT industry is set to have a real tough time ahead.
Another interesting point is that it is the IT big houses of India, like Infosys and TCS, which have opened their centers overseas and are hiring locals to cater to the needs of the clients. These are the same Indian IT companies which used to quote “Big Talent Pool” of India as the primary reason for getting work, and now the same companies are trying to attract the customers by citing reasons that the local people working for the clients will offer a better cultural fit for the job.
| One can only hope that things atleast remain positive or at par for the Indian IT industry, otherwise the huge investments being made by individuals in home loans, car loans, mortgages on the faulty assumptions of the ever-rising salaries in India will turn out to be a major problem for the whole economy. | Table of Contents |
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