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January 05, 2006

Shortfall in skilled labor in India could divert outsourcing projects, says report

India, a prime destination for the booming outsourcing industry, is facing a shortfall of skilled workforce. This shortfall might force outsourcing jobs to be diverted to other destinations such as China and the Philippines.

There is a phenomenal growth in the number of call centers and outsourcing firms, but young aspiring Indians do not qualify because of their poor English. The shortfall, according to a report by ABC, will be to the tune of 5,00,000 workers in the next few years. Monsters and Critics.com reports:

The problem with the skilled worker shortage in the second-most populous nation in the world is not quantity but quality, the report said. Many of the 3.6 million graduates churned out every year by Indian universities are considered mediocre, the report said.

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