So, you're having a tough time finding employees with the desired blend of technology and business skills?
Turns out your outsourcing provider may be feeling your pain.
According to a recent Associated Press report, India's outsourcing firms are having an increasingly tough time keeping up with demand. An analyst with Susquehanna Financial Group calls the staffing issue "the Achilles' heel of the industry." India's National Association of Software Services Companies predicts there could be a shortfall of up to 500,000 technology professionals by 2010.
Part of the problem is that some of India's technology graduates lack basic business communication skills. Experts estimate that only about a quarter of the 400,000 annual graduates of engineering programs at Indian schools have appropriate entry-level job skills.
Some big Indian firms are pouring big bucks into training programs in an effort to bring recent university graduates up to speed. Infosys Technologies spent $350 million to build a 500,000-square-foot educational complex in Mysore. Some 4,500 students at a time are in enrolled in 16-week training courses there. They are schooled in "soft" skills such as e-mail etiquette and problem-solving, in addition to technical areas like programming.
Firms like Infosys might find themselves having to pay more for the most qualified candidates, driving up wages and eroding some of the labor cost advantages they are currently able to offer their clients.