September 14, 2011: Manpower Group conducted a survey on the Human Resources practices by Indian and Chinese Information Technology (IT) and Business Process Outsourcing (BPO) sector. There were speculation about India and China to slow down hiring towards the end of 2011, the purpose of the study conducted by Manpower Group was to find out whether the speculations are true or not.
Manpower Group is one among the largest firms which are into workforce solutions with an experience of more than 60 years and having one of the most efficient research and development team.
According to the survey report conducted by Manpower Group Indian and Chinese companies are planning to reduce the number of intake of employees. This decision is to overcome the recent economic downtrend and its negative impacts. Today the US market is in crisis and Indian companies are finding it pretty difficult to adjust with this scenario. Most of the clients that are into contract with Indian BPO and IT companies are from US and UK. At present US clients are looking forward to lessen their burden putting an end to the services rendered from offshore market and focusing more on shared service models.
The shared service models can deliver quick business solutions at very cheap cost. Moreover the emergence of Philippines and South African service providers as suitable offshore and onshore market for the US based clients are also threats for India and China. In this year outsourcing sector has witnessed an increase in the number of new contracts and business deals in the nearshore market such as Philippines and South Africa.
The research team could find that Indian employers believe that it is more beneficial for the service providers to hold back the recruitment process as it is not healthy to increase the expenses by adding more employees and investing for the training of the freshly hired.
The situation is entirely opposite in nearshore markets. Countries such as Brazil in the nearshore and countries such as Philippines, Singapore and Taiwan in the offshore are looking forward to strengthen there hiring practices towards the end of 2011. But experts in the IT and BPO sector believes that it cannot be practiced in India because today remuneration for employees in Indian BPO and IT sector is high and increasing. It is also expected that in the near future offshore market India may lose the tag line of the cheapest offshore market.
Any how the recently adopted strategies by Indian and Chinese outsourcing firms are expected to continue till the first quarter of 2012.