In the beginning, India’s attractiveness as an outsourcing destination was the cheap and vast manpower. Every year thousands of engineer graduate from Indian Universities creating an enormous talent pool.
However, in many cases, they have failed to produce world-class software products. Why? It´s true that many young people graduate with IT degrees in India, but the abundance of IT graduates doesn't guarantee quality work.
India’s booming software industry, which has maintained rapid growth over the last 15 years lacks well-trained and experienced resources which has a greater impact than some companies imagine.
A couple of years ago, for example, Google had some problems finding skilled development resources as many other American companies are also looking for the best software talent.
The company's Founder and Director Kavitark Ram Shriram admitted: “Google, which is considered to have a very low attrition rate even in the high-job-hopping Indian IT space, has found it more challenging to hire certain talent in India as compared to other parts of the world”.
Apple in April of 2006 commenced operations in India, but one month later they ceased activities. Some of the reasons were: India isn't as inexpensive as it used to be, the turnover is high, and the competition for good people is strong. In the end, Apple felt it could do it more efficiently elsewhere.
Today, a large company which wants to recruit people has to have in-house training facilities and extensive training programs. These training programs are expensive and sometimes companies use their experienced manpower for training. That implies a higher cost (expensive airplanes tickets, the long distance, the host, etc.) The trainer can be in more “productive” activities like projects and R&D, instead of teaching.
Perhaps American companies will seek software development outsourcing partners closer to home, such as Canada or Mexico to avoid the headaches of Asian offshoring. At least the training can be much easier and the cost is lower because of the close geographical proximity.
However, in many cases, they have failed to produce world-class software products. Why? It´s true that many young people graduate with IT degrees in India, but the abundance of IT graduates doesn't guarantee quality work.
India’s booming software industry, which has maintained rapid growth over the last 15 years lacks well-trained and experienced resources which has a greater impact than some companies imagine.
A couple of years ago, for example, Google had some problems finding skilled development resources as many other American companies are also looking for the best software talent.
The company's Founder and Director Kavitark Ram Shriram admitted: “Google, which is considered to have a very low attrition rate even in the high-job-hopping Indian IT space, has found it more challenging to hire certain talent in India as compared to other parts of the world”.
Apple in April of 2006 commenced operations in India, but one month later they ceased activities. Some of the reasons were: India isn't as inexpensive as it used to be, the turnover is high, and the competition for good people is strong. In the end, Apple felt it could do it more efficiently elsewhere.
Today, a large company which wants to recruit people has to have in-house training facilities and extensive training programs. These training programs are expensive and sometimes companies use their experienced manpower for training. That implies a higher cost (expensive airplanes tickets, the long distance, the host, etc.) The trainer can be in more “productive” activities like projects and R&D, instead of teaching.
Perhaps American companies will seek software development outsourcing partners closer to home, such as Canada or Mexico to avoid the headaches of Asian offshoring. At least the training can be much easier and the cost is lower because of the close geographical proximity.
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