Technology news and Jobs arrow Information Technology News arrow India loses appeal as labour costs rise
India loses appeal as labour costs rise E-mail
by Stan Beer   
Wednesday, 27 September 2006


However, with India, it is not just a cost issue, according to Sanderson.

“Maybe even a bigger issue is attrition. It’s hard to keep people over there. The industry in India sees 25-30% attrition. In a lot of specific projects, you see even higher attrition than that,” says Sanderson.

“Being a software developer, rather than being a project related company, we have to keep people for years and we can’t have that kind of attrition.

“So we looked around and the Philippines seemed to be a pretty good fit. Their cost structure is about the same, they don’t have nearly the cost escalation and they don’t anywhere near the attrition rate.

“The Philippines has a smaller pool of resources but as long as we’re not for thousands and just hundreds of people, the resources are there and well skilled. The Philippines is a little weaker in top management but we’ve done alright.”

So why are people leaving companies in India and why the escalating costs?

 
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