Friday, November 17, 2006

IT, India and availability

Heres post on Businessweek on design that ponders on the question of Indian IT. Indias IT companies already have branches in China. There is no saying that they will take advantage of Chinas workforce pool, presumably low talent (also presumably involving high training costs).

In the post TCS CEO Ramadorai says that there is a lot of talent still untapped in India. I agree. But if you see all over there is a constant buzz on how the talent pool in India is drying up. I have written on the same topic a while before, but let me delve into it once again here.

At last count the Indian IT was forecast to employ about 13 lakh (thats 1.3 million) associates. This was from a Nasscom report on the same topic.

For the next year, we are estimated to produce about 3.82 lakh engineers and another 1.9 lakh IT related engineers (electronics, comp sci. etc.). Infosys (60,000+) , Wipro, TCS and Satyam perhaps employ about 3-4 lakhs combined (the actual number is slightly lesser). The majority of them are engineers - easily about 60%.

The pool for graduates is almost thirty times larger. This is an anecdotal estimate and in all probability the pool of graduates should be larger than this. (One estimate puts it at 47 million, thats 470 lakhs - which is almost 100 times the pool.)These companies are looking for opportunities to hire non engineers and all of them have started doing so; TCS for a long time now, Infosys relatively recently.

Of course, this pool is not "plug and play". They have to be trained. And this is where our biggies score. The talent pool shortage exists - for specialized positions and people with specialized experience. If you are talking freshers and your company is willing to hire, train them, there is no shortage. Not till the industry grows a 100 fold, atleast.

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