| Topic Name: |
Low Financial Services Demand |
| Message Name: |
India employees more loyal?? Where have you been? |
| Date Posted: |
03/10/2006 |
| In Reply To: |
FS companies generally do not value outside consultants when it comes to handling their IT Systems. They would rather do it as cheap as possible using their own internal IT staff, which includes a lot of offshore staff.
If you look at the trend right now in FS, many major FS companies are choosing to build out their own offshore operations capabilities (e.g. JP Morgan, Citigroup). They can pay $10,000 to an employee in India versus $60-80K for an equivalent employee in the US. Right now it's happening with most middle and back office operations jobs, but soon some front office jobs will even see themselves out in India. Employees are cheaper, more loyal, and in most cases more skilled than their US equivalent.
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| Message: |
To state that the resources in India are more loyal is completely inaccurate. Salaries are inflating VERY quickly because people are jumping ship left and right for more money. Companies are hiring people w/o interviews as long as they work at a competitor's shop. So no, they are not loyal.
And in terms of being more skilled, that is not the case either. While the onshore-facing roles tend to be filled by highly educated people the rest are just butts in seats. They get slammed through an IT course and start coding. Some come in w/o college educations. Why do you think all the shops are so focused on CMM compliance? It's so anybody can do the work at the lowest levels.
This is just a trend. The trend will end soon enough when the cost to offshore business functions will not justify the logistical issues and rising cost of employment in India. Look for countries like China, Indonesia, Russia to pick up where they left off. India is not the answer to IT. They merely capitalized on a trend. So think about this before you start with the bandwagon jargon.
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