Stan Beer
Wednesday, 27 September 2006 17:56
IT Industry -
Market
Page 2 of 3
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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