Rising Salaries and Lowering Quality Threatens Indian IT Industry

I can understand the pains of CEO/Manager of SME Indian IT companies from Angsuman Chakraborty words particularly about the quality of work.

It is the 20/80 (20% of quality man power and 80%of lack of quality manpower)principle thats is going on here in the Indian IT Industry.

Though it is considered to be not good to the overall industry but in long run one can expect this to increase to 80/20 and yes most of the companies are working towards achieving that. This can be visualised by the updated training procedure and huge investments in training by most of the companies.

At the same time SME should give Salary/Rewards/Bonus/Training to the quality profressionals who are really pulling the strings of the company otherwise biggies will hunt them.

I agree completely with this.Their is no loyality towards the company they are working for.People are just moving around for small hikes also.Moreover the Quality of manpower and the HR practice is terrible in Indian IT Industry.

To Sunil Kumar Gupta, Do you think IBM & Accenture are running the show in India with Quality manpower.Its just limited for their advertisements.Some Projects are going heywire or the projects run with just some talented hands, other resources being mere spectators.Poor Euro/American clients cant complain about these under talented indian resources due to their politeness(or any other).

Yes. Salary is high in India now days.

Well..
I do agree to certain extent with the lowering standards of Fresher Recruitment. Companies like TCS, Infy, Accenture & IBM are blindly recruiting people in heaps.. and most of them are not from Top Notch Engg Schools.. and do not even have a sound Academic record either..
Not sure how this will work for betterment of Indian IT Industry as a whole.. but it definitely pinches to see poor skilled people getting selected.. where experienced people who got through all the difficult stages initially have to deal with the lack of skills of these fresh recruits. I’ve experienced this myself where my Team Members are mostly freshers and it gets really hard to get output from them and in the end [B]Productivity & Quality[/B] is comporomised upon..

If this is the case then why IBM and accenture are expading their man power in India. Are these companies running with poor man power? I don’t think so.

Sure it is demand and supply. It is the big boom of outsourcing which is artificially increasing the salaries. And yet such an artificial increase is always fraught with danger. During the dotcom period even the most inefficient people were hired with top pay. In the end it was payback time. I am afraid the same might happen in India, unless we are careful.
Uncontrolled expansion is always fraught with danger.

> who wants quality man power at lower costs
I want quality manpower at right cost, cost which is proporationate with his capability and quality, no more no less.

As for hiring consultants, I ahev tried that route too. More on it later.

My friend,

If you do a lil bit of reasearch you will find that Apple was virtually present in India/B’lore (it was taking services from Birla Transworks and one more, sorry if I am mistaken in name).
Progeon too had been taking software services and has promised continuing it from AZTECSOFT.

Yes, the salaries have increased due to 2 simple reasons, 1. Demand/Supply mismatch and 2. Cost of Living in cities like Bangalore.
I would not fully agree with the quality of man power because if they weren’t good, the would not have been employed at the first place. The proof for that is the entry into a good software co. Ask someone with less calibre to apply and clear the rounds of tests/interviews and get a fat packet.

Alright, as far as your (and others like you, who wants quality man power at lower costs than existing) requirements are concerned, I have a suggestion. Try freelancers/consultants. They are the same quality manpower but would work on a contract basis. They would also do your work with quality and time (of course not as timely than what they would take if employed full time) at much lesser costs.

I hope this helps.

If the job market is still hot then it looks like rising salaries aren’t negatively effecting multi-national investment in India. Companies are pulling out because the competition for staff is too hot, not because of any inherent problems in the market. They just can’t save/make as much money as they would like. If the competition eases - they’ll be back in. But I don’t think that’s desirable.
It’s harsh for smaller companies that have to keep up with the wages the mutli-nationals are offering. On the upside, I guess that means there is a fast-growing tech savvy local market into which you can sell services.
On the whole though surely it’s better that Indian workers are able to share in the wealth created mutli-national investment and the off-shoring trend. In the long-term that will benefit the Indian economy much more than the multi-nationals siphoning the profits back to the US and Britain.
Also, you could look at IBM or InfoSys as training programmes. There may be a skills shortage and quality shortage now (as there was in the West during the boom) - but the long-term effect is a lot of new people will acquire cutting edge tech and biz skills.