Global/United States recession and painful economic slowdown affects are heading towards India now: Over 50,000 IT professionals in the country may lose their jobs


Global/United States recession and painful economic slowdown affects are heading towards India now: Over 50,000 IT professionals in the country may lose their jobs!!

It appears that Global/United States recession and painful economic slowdown affects are heading towards India now. India economic situation which is supposed to be in under control till now will remain in control during this global economics hard hitting period I just hope. Our government did bail out few industries earlier and now it seems like that our Pride IT & ITES industries also needs some bailout packages in coming days.

Yesterday Yahoo.com reported that Over 50,000 IT professionals in the country may lose their jobs over the next six months as the situation in the sector is expected to worsen due to the impact of global economic meltdown on the export-driven industry, a forecast by a union of IT Enabled Services warned.

Read Full Story Here…

I just hope this Global recession is not going to affect adversely Indian industries and we will be able to get out of this economic crunch and job losses things sooner and in a much better way. Keeping Finger Cross

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Indian legal process outsourcing (LPO) outsourcing, market is evolving at break-neck speed: UK News Paper Reports


Indian legal process outsourcing (LPO) outsourcing, market is evolving at break-neck speed: UK News Paper Reports

The Indian legal process outsourcing (LPO) industry In India is increasing with rapid speed. Economic Slump and economic slowdown in international markets seems like that’s it’s going to benefit at least this sector (Indian legal process outsourcing (LPO) in India BPO segment. Today UK National Newspaper reports that 10 out of 30 top law firms in UK have outsourced administrative or legal work to Indian outsourcing partner. So that’s for sure that India Indian legal process outsourcing (LPO) is set to grow despite of this economic slump in world due to cost cutting measures started by most of the leading law firm in many countries and for sure going to benefit Indian legal process outsourcing (LPO) market.

The RSG India Report 2008 is a definitive 200-page analysis of the current legal market in India. Beyond the subject of outsourcing, it also shows that this market is evolving at break-neck speed.

India now has its own “magic circle” of leading law firms with senior corporate lawyers earning incomes comparable with those of partners in medium to large-sized London firms. But, as the study notes, there is a dearth of experience and attrition rates are high.

 

A Big Breath of relief and Some Good news for BPO market:

Yes many Indian legal process outsourcing (LPO) firms can take big breath of relief that even after economic slump in world this segment is bound to grow, and there is no doubt that’s it will grow with high pace as Indian legal process outsourcing (LPO) provider’s have right and best talent to offer and better infrastructure to meet clients needs.

A word of Caution:

I know that the cost advantage Indian outsourcing Industry enjoys doesn’t seem set to disappear anytime in nearby future as we have best talents in world and we get about 80,000 English-speaking fresh law graduates pass out from Indian institutions every year but we need to keep a close eye on cost factor as well as union factor. Both can spoil industry. We need a proper recruitment procedure for all nw employees so that we can serve our clients in best manner. Secondly all the LPO guys especially people who is going to deal with legal work should go through proper security clearance and we also need more strict laws to safe this industry form any mischief’s.

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Indian outsourcing market is set to suffer due to high increase of labour cost ! Act Now or for sure be ready for sorry state !!


Indian outsourcing market is set to suffer due to high increase of labor cost. Skills shortage and rising labor cost of India’s talents is driving away most of the big IT players towards East European countries and china to find out cost reduction.  India is no longer able to give cost cut to these big IT players.

Many companies who were opened their offshore center in last few years here in India are planning to move somewhere else or in process of moving out because high cost of Indian Labor Market.

Emerging nations like Morocco, Hungry and other SE nations will eat major chunk of Indian IT outsourcing market share if we still not sit down, do some brain stormy thinking and make workable long term strategy to keep this industry at par.

We desperately need that our government should sit down with outsourcing and off shoring corporate leaders to identify specific skills required for the industry, current market trend and how we can reduce the cost of products and solution without hurting the cost of labor market and in future how we can control labor rising cost. Government should also try to find out the way to decrease taxes to keep this industry growth for at least next decade.

Outsourcing industry gives India billions of Dollars every year; this is the main factor that our economy is growing so fast. If we don’t do major brain stormy session now and don’t come up with some long term strategy for this industry then be prepared for sorry state.

We are heading to lose our greatest strength – low-cost labor – Act Now or for sure be ready for sorry state !!

India no longer top outsourcing destination?

ndia’s dominance as a low-cost outsourcing destination seems to be on the decline, with countries like China, Morocco and Hungary fast emerging as the preferred choices by IT services providers, a recent study says.

Focused on UK’s top IT service providers, a study by Pierre Audoin Consultants (PAC) showed that China, Morocco and Hungary are the new locations of choice to set up offshore sourcing centres.

HSBC ramps up Indian outsourcing presence


Good news for Indian outsourcing industries, who has been facing uphill task in conveying financial companies about outsourcing benefits to India after UK channel 4 airs report about data theft from Indian call centers.

http://www.silicon.com reported that HSBC is planning to expanding its offshore outsourcing operations in India with a new BPO facility in Kolkata and a software development centre in Hyderabad.

HSBC is expanding its offshore outsourcing operations in India with a new BPO facility in Kolkata (formerly known as Calcutta) and a software development centre in Hyderabad.

HSBC already has one wholly owned BPO subsidiary – HSBC Electronic Data Centre – in Kolkata, which has 2,000 employees working on back-office operations, and is now planning to set up another centre in the same city.

HSBC’s general manager and country head for India, Naina Lal Kidwai, said the second BPO facility in Kolkata will employ another 2,000 staff, according to reports in India.

 

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Organized Labor Comes To India’s Tech Industry


The Nightmare Comes True

I thought it was terrible. I was wrong. It is far, far worse!–These words sum up my feelings at that moment. Very sad day for India’s booming IT/ITES industry. Now watch out strikes by Indian techies, which will tarnish the relatively good image that outsourcing enjoys among corporations in other countries.

Unionizing IT/BPO sector will hamper the growth of Industry. This will be a back step and it will reduce the growth rate of most booming industry in India. Foreign clients don’t like unionizing the sector because of the fact that it’s just another way to blackmail them.

India’s technology industry, which has been merrily soaking up jobs from higher-cost countries, got a little shock last week when it had its first brush with organized labor.

The Center for Indian Trade Unions, a Communist group that represents several million employees across India, launched the West Bengal Information Technology Services Association in Kolkota. Since it’s not as much a union as an employee rights group, membership is voluntary.

Trade union leaders have accused technology-services firms of abuses ranging from firing employees without notice to not providing transport for workers leaving late-night jobs.

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TATA Hugged Huggies! India’s TCS gets $100 mln deal from US firm – source


Tata Consultancy Services Ltd. is going up and up just after winning the contract of Qantas Airline last week has bagged new $100 million contract from U.S. firm Kimberly-Clark Corp.

Dallas-based Kimberly-Clark, which makes Huggies diapers and Kleenex tissues, joins a rapidly growing number of foreign firms that outsource design work, supply chain management and payroll processing to India.

NEW DELHI, Nov 14 (Reuters) – Top Indian software services firm, Tata Consultancy Services Ltd. (TCS.BO: Quote, Profile, Research), has won a $100 million contract from Kimberly-Clark Corp. (KMB.N: Quote, Profile, Research), a source close to the deal told Reuters on Tuesday, boosting its stock.

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British supermarket major to move IT jobs to India


Britain’s fifth-largest supermarket chain Somerfield is planning to transfer nearly 120 IT jobs from its Bristol head office to a consultancy in India in a bid to reduce costs. Somerfield was in talks with Indian IT giant Tata Consultancy Services (TCS), but had not signed a contract. Good news for Indian outsourcing Industry.

London, Nov 7 (IANS) Nearly 120 jobs in the IT department of supermarket chain Somerfield in Bristol are expected to be moved to India as part of its latest cost-cutting programme.

Somerfield is reported close to signing the contract with India’s IT major Tata Consultancy Services (TCS).

The 141 workers in the department, based at Somerfield’s Whitchurch, Bristol, head office, have been told of the move. Around 25, mainly managers, are expected to stay in Bristol to oversee the operation.

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