No. 1 Story
ACCC clears Optus to scrap HFC network and use NBN instead
The ACCC has cleared, provisionally, the proposed deal between Optus and NBN Co under which Optus is to be paid around $800m to shut down its HFC network and transfer customers onto the NBN. read moreIndia loses appeal as labour costs rise
Stan Beer
Wednesday, 27 September 2006 16:56
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“They basically have a shortage of skilled people,” says Sanderson. “They have six IT schools in India graduating very well skilled people but you’ve got companies like IBM looking for 11,000 people and there’re not that many skilled people that can feed those companies that fast.
“So if you bring in a new Indian IT person, he expects to be promoted within six months. And if he doesn’t get a 20% bump in six months and another 20% after that, he can walk down the street and get another job and that’s what they’re doing.
“If you’re looking for people with 3 to5 years’ experience, I would say that India is now more expensive than the Philippines.”
While the Philippines is a good option to India for companies like Lawson, Sanderson believes that organizations with bigger staffing needs will eventually turn to China as an alternative to India.
“In five or ten years, the big guys are going to skip over to China. It’s developing really fast and they’ve started teaching English in primary schools. In 10 years, those kids will have the communications and technical skills and there will be the numbers to staff the companies that want 1,000 to 10,000 employees.”
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