Subscribe free to our newsletters via your
. Energy News .




TRADE WARS
Global fears shackle India's outsourcing job-hoppers
by Staff Writers
New Delhi (AFP) Aug 6, 2012


The employee turnover rate in India's notoriously job-hopping outsourcing sector has fallen sharply as a weak global economy hits the flagship industry, a study on Monday showed.

While still elevated by other Indian industry standards, the outsourcing turnover rate tumbled to 15-20 percent in the last six months of 2011, according to the study by business lobby ASSOCHAM, down from 55-60 percent in the same year-earlier period.

"Employees are wary of switching jobs due to apprehensions about the economic slowdown," said Associated Chambers of Commerce and Industry of India (ASSOCHAM) secretary general D.S. Rawat said.

"A high employee retention rate can been seen almost across all levels of management in the information technology and back-office outsourcing industry sector," Rawat said, as employees adopt "a wait-and-watch policy".

US and other foreign firms, drawn by India's English-speaking workforce and lower costs than in the West, have farmed out a wide range of jobs from answering bank client calls to processing insurance claims and equity analysis.

But the $69 billion industry now is under severe pressure.

US and European firms are spending around 40 percent less on new projects than in the past as clients hold back in the face of the uncertain global climate, according to industry heavyweight HCL Technologies.

The outsourcing sector earns about three-quarters of its revenues from the US and Europe. India's IT and back-office outsourcing sector is also facing stronger competition from rivals in Southeast Asia, Eastern Europe and Latin America.

Industry body NASSCOM projects the sector will grow by 11-14 percent this year -- still robust expansion -- but only half the clip the industry posted in the past decade.

The attrition fall, while highlighting the problems facing the sector, "is a blessing in disguise", Rawat said, easing the "talent crunch due to a shortage of competent managers" with which the industry has been grappling for years.

Also expenses involved in recruitment and training have "come down drastically", easing pressure on the bottom lines of outsourcers, Rawat said.

India's outsourcing sector recently reported mixed quarterly results with market leader Tata Consultancy Services and HCL Technologies, which is fourth-largest by sales, posting strong earnings.

Infosys and Wipro, India's second- and third-largest outsourcing companies respectively, posted disappointing numbers.

The survey did not break down attrition levels by company but said the slowdown was across the sector.

.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








TRADE WARS
Philippine mining reforms ignored at gold-rush site
Mount Diwata, Philippines (AFP) Aug 5, 2012
The Philippine government wants to close thousands of small-scale mines blamed for environmental devastation, but Reynaldo Elejorde insists his chaotic gold-rush mountain town will survive. The 53-year-old former carpenter and his family have been digging alongside hordes of others into the rich veins of Mount Diwata since the 1980s, and the efforts have allowed them to survive just above th ... read more


TRADE WARS
Defense, Interior develop renewables

S. Korea issues power shortage alert amid heatwave

Australia PM calls for electricity reform

S. Korea issues power shortage alert amid heatwave

TRADE WARS
Turkish gas firms eyeing Bulgarian market

Blast interrupts Iraq-Turkey oil pipeline

China welcomes Sudan, South Sudan oil deal

"Green Metal" is an Essential Element for Renewable Energy

TRADE WARS
Mexico goes ahead with wind power project

Wales wind power line plans draw protests

Offshore use of vertical-axis wind turbines gets closer look

SeaRoc to provide full installation services on Narec's Offshore Anemometry Hub

TRADE WARS
SolarCraft Brings Solar to Altamont Apartments

Walmart Unveils 100th Solar Installation in California

Tecta Solar Completes Solar Photovoltaic Installation at Augustine Casino

REC rolls out its industry-leading certification program for solar installers in the US

TRADE WARS
South Korea restarts oldest reactor

Japan A-bomb survivors warn against nuclear power

carboNZero Holdings and Energy and Technical Services Limited (ETSL) form Strategic Partnership

AREVA joins the World Association of Nuclear Operators

TRADE WARS
German National Academy of Sciences issues a critical statement on the use of bioenergy

U.S, Australian navies focus on new fuels

Strategies to improve renewable energy feedstocks

Brazil to build first algae-based biofuel plant

TRADE WARS
China's Long March-5 carrier rocket engine undergoes testing

China to land first moon probe next year

China launches Third satellite in its global data relay network

Looking Forward to Shenzhou 10

TRADE WARS
Stanford expert brings climate change science to heated Capitol Hill

Climate change to blame for extreme heat: NASA scientist

Mapping the future of climate change in Africa

Cuts in super greenhouse gas stalled by China, India, and Brazil




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement