In the New Delhi, every three months, India’s prime minister meets with a special panel assigned the ambitious task of figuring out how to produce 500 million skilled workers over the next two decades. The panel is a cross sections of the India power elite, including many of the usual figures like the education minister. The finance minister and the former chief executive of the country’s biggest software outsourcing company. There is more curious choice. Mr. Sabhardwal runs TeamLease, a Bangalore based agency that has created thousands of the jobs by fielding temporary workers for the companies in India that want to expand their workforce while skirting India’s stringent labor laws. The businesses say discourage the hiring of permanent employees. Most of the labor leaders and left-leaning politicians accuse the running the nations largest illegal business.
The India is known as the world over as a prime innovator of the outsourcing for foreign companies which take advantage of its cheap, English-speaking labor force. Less well known is the extent to which Indian companies outsource their own jobs within their own country. Like the Gucci and Satya Paul and many of the store clerks, janitors and security guards will be on the payrolls of the outsourcing companies, not those of the owners of the small or stores in it, walk into any of India’s shining new shopping malls that sell expensive brands. The practice highlights a fundamental tension between India’s socialist past and a new freewheeling, private sector that is increasingly powering the economy while chafing at what many companies say are laws so protective of the workers that they blunt hiring and stifle growth.
The old system in a manner that is not without the controversy, it fills thousands of jobs at a cost that allows many companies to continue to function and even it helps retrain India’s large population of the young job seekers, half of the Indian are 25 or younger who are undereducated and will prepared to enter the labor force. In that the highly competitive environment for the jobs, Mr. Sabharwal supplies workers who are paid as little as half of what permanent employees earn and who is usually receive few benefits. Though the technically temporary, most of them keep their status at the same companies for the years. The India’s nascent industrial hubs near New Delhi, the autoworkers are increasingly protesting the use and the treatment of the kind of the contract workers, Mr. Sabharwal supplies who lack job security. The nations complex web of the federal and the state labor laws intend to protect permanent workers are so onerous that the few employers want to hire them. The laws cover virtually every aspect of the employment, the workers are hired they are paid on how many hours they can work and whether they can be fired.
REFERENCE:
http://flashnewstoday.com/index.php/for-india-outsourcing-does-the-job-at-home-too/