Monday, 3 August 2009

The looming labor shortage

It looks like India’s BPO boom would have to face reality rather sooner than expected.
The labor shortage, which I have been talking about earlier is now catching the attention of mainstream media.
This article in the CIO Today magazine carries highlights from the Nasscom McKinsey study about the pitfalls of the scenario going forward.
The study carries some strong messages if India needs to keep the momentum going.
Meanwhile the fight for scarce resources is on amongst the players who have already landed here.
This results in shortage even to the domestic industry and other sectors. For example, a NY based law firm setting up operations here in Mumbai has taken about 300 Lawyers and para legals at salaries that are double what the market pays for such skill sets. This no doubt results in a shortage of lawyer for law firms who were themselves otherwise overburdened by the growing economic activity.

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