Way to go! I am so
Posted By: (sm) on 2009-03-20
In Reply to: Wouldn't it be more effective.... - CC
proud and appreciative of you for taking the initiative!
If you have not already done so, I would review the thread on the company board that was started by TravelinMT, as she has a similar situation going on with her local paper wanting to run a story and has received information/advice from several posters here. I don't think you should worry about telling them your line of work, but do include other industries that are being affected. IT, software developers, call centers . . . I just tried a Google and there's so much information that it's just a matter of time and research, both of which I know you are short on right now. I would really suggest e-mailing TravelinMT if there is not enough information in the thread on the company board, as she is having to put it into 750 words pretty quickly. Was supposed to be by today, but I think they are now looking at Monday coming out and talking to her. I hope she does not mind my suggesting that, it's just that she knows the boat because she was caught off-guard by how quickly things happened in a similar sort of way as you have been, so I think she would be willing to share notes, etc. I think she mentioned her paper is looking more at how it is affecting the current economic situation, but that's a good thing, 'cause that's on everybody's mind big time right now.
You GO GIRL!!! Good luck, and feel free to e-mail me if I can help. It seems a bit overwhelming to me and I am not in your shoes, but just googling to get some information to post here was overwhelming and I had a sense of urgency and everything looks important but too much info., etc. So I can certainly understand how you must be feeling.
Thanks for taking the initiative!
A company that appears to work as a go-between, helping companies to obtain offshore workers:
http://www.sourcefit.com/
This is an article on http://www.bnet.com
I only posted here the first page:
U.S. IT firms catching up to Indian competitors in offshore outsourcing race, says Goldman Sachs
Manufacturing & Technology News , Sept 20, 2005
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Large multinational information technology service firms like Accenture, EDS, Unisys and IBM are catching up with Indian-based competitors in providing clients with cheap services performed in India, but they still have a long way to go, according to an assessment conducted by Goldman Sachs' global investment research group.
The model of shipping high-cost IT service jobs to India maintains its attractiveness, says Goldman Sachs, and "continues to cement itself with clients." All the major IT services companies are growing rapidly in India.
"Although the market opportunity remains large and there appears to be ample room for most competitors, we believe the competition will become more direct for market share and talent over the next few years," says Goldman Sachs in a "Head-to-Head Assessment." "Offshore services are becoming a 'zero-sum' game."
Both U.S. and European multinational IT service companies (MNCs) are aggressively hiring Indian workers in order to fill demand from customers for cheaper services. But the European firms (mainly CapGemini and Atos) have been late to embrace the model and their offshore efforts "remain relatively weak," says Goldman Sachs. "Xansu stands out with 15 percent of revenues generated from India-based offshore."
The India-based head count for the non-Indian multinational companies that Goldman Sachs follows will total 81,828 at the end of this year and is projected to grow by 32,236 to 114,064 by the end of 2006. "Nearly 62 percent of employee additions for MNCs are expected to come from Indian-based employees in 2006," says Goldman Sachs. "IBM Services is expected to have the largest head count in India with 38,000 employees in 2005 and 52,100 in 2006, up 37 percent year-over-year." India-based employees working for IBM Services will account for 20 percent of that company's workforce in 2005 and 25 percent in 2006.
With 52,000 employees in India by the end of 2006, IBM will pull ahead of the large Indian "pure plays"--Infosys and Tata Consultancy, which are expected to finish 2006 with nearly 48,000 and 41,000 Indian employees, respectively. "Over the same time period, Accenture is expected to ramp up to nearly 29,000 employees in India, making its employee base larger than [India-pure plays] Cognizant Technology, Patni and Satyam," says the investment firm.
Now that IBM and Accenture have established a critical mass of employees in India, they are beginning to generate additional business. "Anecdotal evidence suggests that offshore deals that were once the exclusive domain of Indian pure plays have opened up to these companies," says Goldman Sachs. "... Clients seem to be growing more comfortable with the multinationals' offshore development and this could pose a challenge for some of the Indian pure plays that cannot match the global scale, capabilities, client relationships and domain experience to compete with the multinationals."
That doesn't mean the pure-play companies aren't growing at a healthy pace. Head count among these firms should hit 206,027 in 2005. In 2006, that number should increase by 25 percent or 51,854 to 257,881. Through 2006, Indiabased pure play companies "are expected to maintain an India-based employee lead over their MNC counterparts by a factor of 1.7 times," says Goldman Sachs. "However, this is down from 2.0 times in 2005." Infosys, TCS and Wipro should reach 40,000 employees; Cognizant Technology and Satyam should exceed 20,000 employees in India, or about the same size as Accenture.
"Fortunately for the larger offshore pure plays, the competitive advantages of cost, methodology and experience, model efficiency and scale in India still play to their favor and are not likely to be quickly replicated by MNCs," says Goldman. "However, pure plays must be diligent in protecting their competitive advantage they have created in the offshore model." Cognizant and Infosys are well positioned among the pure plays, in our view."
The trend of outsourcing IT services to India poses problems for the non-Indian companies. The offshore model "will continue to unleash a revenue deflationary force (through lower bill rates) and/or revenue cannibalization (on-site work replaced by offshore work)," says Goldman.
As for revenues, the India pure plays are projected to generate total sales of $11.4 billion in 2006, up 33 percent from $8.7 billion in 2005. The multinationals' India-based revenues in 2006 should be $5.9 billion, an increase of 39 percent.
The big non-Indian companies are also beginning to recruit heavily from Indian universities. This will put them in direct competition with the India-based pure plays for campus recruits, "and over the long term could introduce an element of wage inflation not recently experienced by these companies," Goldman notes. "We believe India still has an ample supply of campus graduates per year--at roughly 300,000 or more per year, which should easily provide the entry-level labor required to meet the demand from MNCs, captives and Indian pure plays."
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