The country has been hit by the global crisis, financial scandal in the nation, terror attacks in the Mumbai and US President Barack Obama’s campaign promise to the end tax breaks for the US companies that send their work overseas. This is an economic tsunami is assailing the Indian shores. The outsourcing industry is a source of the Indian economic prosperity and the national pride since the mid-1990s has been hit hard. The clinical research aerospace, information technology and the business process outsourcing that have all been affected. They all have been promise to weather the storm.
In November 2008, the bombings in Mumbai drove away the potential investors and the uncovering of a 71 billion rupee fraud operation at Hyderabad based Satyam Computers, the India’s fourth biggest software and service exporter raised severe credibility issues. The taz disincentives introduced by the Obama in May mean trouble at the Indian outsourcing hot spots, this includes the Gurgaon, Mumbai and Pune in the North and Bangalore, Hyderabad and Chennai in the South. The information technology Information Technology and the Business Process Outsourcing sector that may be the biggest software and the service exporter that raised severe credibility issues. This is urging the employers to explore creative cost cutting options rather than laying people off.
The Delhi and Bangalore offices of Information Technology firm HCL Technologies laid off 450 of their nearly 53,000 employees. The two other outsourcing companies, Tata Consultancy Services, based in Mumbai and Wipro Technologies in Bangalore on 13 June that Indian companies may not be able to hire more than one third of the 35,000 engineers expected to the graduate in India. The Shekhar predicts that at least 50,000 people in the sector will lose their jobs by the end of the year. This is instead of firing, the companies should try to enhance their skills to enable them to shoulder the new tasks. The industry will start to bounce back in early 2010. The companies explore new sectors and regions, focus more on the domestic market and rely less on the United States and Europe. The industry will continue to hire more people than it loses, it will have grown by 15 percent rather than the 30 percent typical of earlier years.
The sagging economy has encourage young scientists and engineers to consider safer options such as government jobs. The Indian Space Research Organization based in Bangalore that received more than 130,000 applications from the scientists and engineers, for just 300 advertised posts. The positions at the Defense Research and Development Organization are in high demand. The organization may hire as many as 60 engineering graduates 12 percent of the people that recruits this year from the prestigious Indian Institutes of Technology compared with one or two in a typical year. Graduates from the institutions travel abroad or choose for the high salaries of a big companies. The outsourcing companies such as Ananth Technologies in Hyderabad are trying to turn the adversity into an opportunity. The Ananth applies geographic information system tools to spatial data from satellites whether providing data to telephone companies about the best locations for their transmitters to oil companies about the best route for laying pipelines.
REFERENCE:
http://www.nature.com/naturejobs/2009/090716/full/nj7253-424a.html
