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India faces quality shortage in outsourcing – wage inflation a possible fatal cause of concern
Babu Ghanta
Jun. 7, 2005
India is facing a massive shortage of quality talent in the back office. The shortage is not in quantity but really in quality of talent. Still these talents leave India for abroad after gaining some experiences.
India could fall short by a quarter million talented workers in four years who can perform in back office Business Process Outsourcing and IT.
"The problem is not with the quantity, but with the quality," Rajeeva Ratna Shah, a top official of the federal Planning Commission, which directs India's economic strategy, said during an outsourcing conference in the southern city of Bangalore, the center of India's high-tech industry.
Eventually this will cause wage inflation. Wage inflation will take the attractiveness of getting low cost services from India away. It may finally sound the death sentence for India’s booming outsourcing company.
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