Skilled labor shortages and lack of infrastructure are continuing issues for India's outsourcing industry.
India's outsourcing boom is creating shortages of workers with the skills needed to deliver call center, business process outsourcing, application development, and other IT outsourcing services. A study by McKinsey & Co. says that India's outsourcing industry currently employs approximately 350,000 people, but is facing a potential shortage of 500,000 workers in coming years. While general labor is plentiful, the real issue is a lack of skills and experience.
These shortages are beginning to create upward pressure on salaries, and are increasing the difficulty of retaining good workers. If India's salaries continue to rise, the country could start to lose its cost advantage over other labor markets.
Another difficulty that could stall India's rapid growth is a lack of up-to-date infrastructure such as roads, airports, ports, and railroads.
Facing these and other challenges of offshoring to India and developing countries, U.S. companies are starting to look more at nearshore facilities as sourcing alternatives. For example, VMC provides technical support and call center services from our facility in Toronto, Canada.
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Welcome to Compass, VMC's monthly newsletter. Each month Compass will spotlight the passionate people and milestone innovations that drive our technology solutions. |
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VMC Welcomes New Director |
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As Director of VMC's Enterprise Consulting and Services, Avijeet Ghose is responsible for leading and growing the company's Management Consulting, Systems Implementation, and IT Service Management practices to serve our Fortune 1000 clients worldwide. Avijeet brings more than 15 years of experience in technology management and consulting to our VMC Management Team. |
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Compass Case File: VMC Canada, In-Sourcing Call Center |
| VMC's client needed a comprehensive call center team to perform sales, customer service, and technical routing tasks interfacing with customers. Read how VMC provided a fast-acting, efficient call center solution to help the client meet its high quality customer service and satisfaction goals in this case study. |
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News: VMC to attend Microsoft's Xfest |
| VMC is pleased to be part of Microsoft 2006 Xfest, and we look forward to seeing those of you in the games community there. If you would like to meet a VMC representative at the show email us at info@vmc.com |
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We always welcome your feedback on articles and features in this newsletter, so please write us feedback@vmc.com. |
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