Speaking at a conference organized by India’s National Association of Software and Services Companies (Nasscom), Aditya Kohli, a head consultant at Hewitt Associates, said that about half of all staff in IT services and business process outsourcing positions plan to resign in the next two years for better prospects.
Employees are being lured by salary increases of about 20% he said, a result of the increased competition for workers brought by the influx of IT and IT-enabled services projects into the sub-continent.
The Lincolnshire, Illinois-based firm issued a report in which it details the results of a survey of over 500 senior finance and HR leaders. Almost half said that their companies were either using offshore locations or planned to do so in the next three years. The study also claimed that the percentage of jobs being offshored will roughly double in the next three years, with an average of 13% of jobs at each company currently offshore and an additional 12% being considered for relocation within the next three years.
Earlier this month a report by accounting firm KPMG, commissioned by Nasscom and the Indian government claimed that a lack of staff over the next five years could scupper India’s plans to retain leadership in the offshore services market. It identifies a manpower gap of 500,000 staff by 2009, when the market is estimated to require 2.1 million people for IT and IT-enabled services.
This article is based on material originally published by ComputerWire
