India's IT recruiting struggle and rising costs force Indian companies to outsource from China
Pijush Lodh
Apr. 6, 2005

Indian companies are struggling to attract new talents in the IT sector. The sector has reached 100% employment and there are just no one left. And that can be the best news for Chinese Premier and the IT Trade delegation visiting India this week.

"We have not cracked China," admits Jerry Rao, chief executive of MphasiS, which has IT services and call centre affiliates in India, the US and Mexico. "In Shanghai, we have 100 developers, mostly Chinese, but should have 400. Scaling up has been an unexpectedly large problem," he says.

Chinese developers are excellent in design and development of Systems Software and Firmware and the Indian companies are planning to tap China for talented software engineers.

However, China has also shortage of appropriate talents who can effectively work in IT service sectors.

But Indian companies are eying the Chinese talent as well as Chinese demand in IT services, which supposed to explode in coming years.

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