CIO City

View Aaliya Roger 's Profile
What will be the impact of rising wages & attrition on Indian IT/ITES Outsourcing?
What will be the impact of rising wages & attrition on Indian IT/ITES Outsourcing?
Asked by Aaliya Roger | Mar 23 2017 | Report this Report abuse
Replies (3)
View Nitin  Sampat 's Profile
Firstly, it is fairly valid to assume that Rising Wages & attrition have a more than moderate correlation. It is because of rising wages, people tend to take those premature job hops.

Causes: Its a pure-play Demand - Supply game. And to me, it's phenomenon - in - transit. As IT/BPO companies claim moving up the value chain and sorts, that entails those companies to show clients reasons that justify their pitching for high-up-in the value chain work. And as top IT/BPO companies, they set a benchmark for the industry's rising costs. The higer wages is acceptable to these companies since the objective most times is ensuring the company succeeds in its new services footprint. This has a tricke-down effect since large number of employees working in IT/BPO space target such niche-new services start up teams. Also, there is domestic India
Mar 28 2017 | Report this Report abuse
View Anu Dasgupta 's Profile
The impact for the client's side is that they will definitely search for other options when attrition becomes a big factor. As prices rise and the experienced resources are no longer available the price/quality ratio can become unacceptable. Clients will reconsider if the specific task is worth the higher costs. If it's not the client has 2 choices:
- to move away the production to lower costs production
- to upgrade the services to a higher level
Mar 28 2017 | Report this Report abuse
View Durwin  Kawlni 's Profile
We have seen this before, and still see it, in Ukraine, a country where my company has been doing business for 7 years now. Attrition is the key factor that needs to be controlled, not the price factor - as it's something that the market does. Although I do not have experience with resources from Bangalore or Mumbai, I guess the IT market is the comparable.

The impact I see for the suppliers side is that the supplier will spend less time on the highest talents. They develop just too fast and will leave to start on their own. Others get more attention and receive more opportunities. The management spends more time to create a social culture to increase average length of work period to > 3 years. Besides that the supplier will also relocate to smaller cities where the IT competition is less high. We have our own offices in Ukraine working for our front office in the Netherlands. We heavily invest in coaching young people who are really interested to get more experience through increasing difficult assignments and travel to work with colleagues in other units
Mar 27 2017 | Report this Report abuse