Recently, IBM announced that it was investing $6 billion in India and it would hire many new workers in the country too. I covered this topic that time and of course, I am very happy that IBM was focusing on India more and more. IBM's initiative will surely attract many more western companies to come to India and invest. And that seems to be the problem now. Today, I was reading about another company Cognizant. Cognizant is planning to increase its workers in India substantially within a short time. The company has nearly 21,000 workers in India out of its grand total of 28,000. It also is planning to recruit another 5,000 workers in India by the end of 2006. However, after IBM's announcement of tripling its investment in India and increasing the size of its workforce, smaller companies like Cognizant are finding it difficult to find new talented workers. Indian population is over 1 billion and millions of educated people are unemployed but it seems that all the skilled people have already got their employment and finding new talented worker is becoming an impossible job gradually.
Finding new talented worker has become a difficult matter itself but companies Cognizant are now even more worried about keeping their existing workers. Big players like IBM can easily come to the HR market and do some shopping with their huge muscle and that is happening in India already. Big companies are alluring skilled workers from smaller companies with a higher salary and better benefit package. This trend has just started as Indian IT professionals' market has become too much congested. And IBM's heavy buying of skilled workers has made the matter even worse for smaller companies.
I would not call IBM a devil or I would not suggest that IBM should change its policy and be kind to other companies. What I want is that all the Technology companies big and small, Indian and foreign- invest in the education sector of India. Since, India is the best source of getting cheap IT professionals therefore supporting the Indian engineering colleges is a good investment that will benefit all the tech companies. Otherwise, the tech companies should be prepared for worker shortage in India.
Do you agree with me?
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Why doesnt Cognizant go into the rural areas of India to train future recruits?
Or why dont they go to Pakistan or Bangladesh or Sri Lanka or Nepal for new employees. It seems to me that the way India is growing its educated-workforce is all wrong. India needs to go into the rural areas that are 3rd & 4th Tier cities and start to educate and develop those people instead of just relying on people who are from or are moving to Bangalore.
They can finds tons of cheaper labour in Pakistan they should setup shop in Pakistan.
Posted by: Jay | June 22, 2006 6:38 AM | Permalink to Comment