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Managing Skills & Knowledge in the Indian Services Outsourcing Sector: |
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A White Paper by RocSearch & CII |
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Manpower woes continue to plague the Indian outsourcing sector as it grapples with the issues of sourcing, training and retaining skilled manpower while trying to sustain a rapid rate of growth—this is underscored in the latest white paper from RocSearch, launched at the CII’s 3rd Annual Outsourcing Summit held at New Delhi.
Key findings
- Paucity of skilled manpower and lack of government support emerge as the most pressing issues facing the outsourcing sector.
- Every third organization in the study is facing a manpower shortfall upwards of 15%. Employability at the entry level remains less than 10% in almost half the organizations along with acute paucity at the middle management level, especially in smaller organizations.
- 82% companies feel that internal training resources are (or would be) inadequate in the wake of the emerging manpower situation.
- Attrition rate was reported at over 20% in almost half the companies and over 30% in every fifth company. Average career tenure ranged between 1-2 years for almost half the companies.
- Strategies suggested for addressing the situation include:
- Intra-industry collaboration for talent pool expansion
- Industry-institution interfacing & partnership
- Introducing skill-based quality certifications for training
- Supplementing existing training resources within the organization
- Creating structured retention programmes
- Focus on work enrichment & enhancement besides employee development
- Leveraging formal knowledge management programs to shorten learning curves and improve customer focus as well as to mitigate the impact of attrition on the organization
- Also includes Caselets on:
- Innovative manpower sourcing model of Aspire
- Knowledge Management system at Satyam Computer Services, the winner of Know network’s Indian & Asian MAKE—Most Admired Knowledge Enterprise—awards for the year 2007.
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Knowledge Services White Paper:
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An insight into the impending workforce crunch in the Indian Knowledge Services Outsourcing Market
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The latest report from RocSearch is a part of an ongoing study to understand the knowledge services outsourcing industry, a nascent and promising industry that is still trying to define its domain and crystallize its business models
It examines the basic premise that India’s vast, skilled labor force will attract a large portion of
the global knowledge services activity. In doing so, the analysis not only covers the numbers added to the Indian workforce every year, but also closely examines their employability in a
globalized work environment.
The report determines that supply-side restrictions are likely to limit the industry value to a level far below the numbers often suggested by the media as well as some industry players. It explores various alternative scenarios in order to encompass a spectrum of possibilities. One underlying assumption of the analysis is that the demand for labor is assumed to come from developed countries as well as global companies based in India.
The study suggests that a limited pool of employable labor supply may constrain the potential of India’s knowledge services outsourcing industry. And it is against this backdrop that initiatives such as Knowledge Management (KM) can evolve into an integral component of the outsourcing industry’s strategic response to manpower issues.
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White Papers 
