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15th May 2017, 21:03 | #406 | |
BHPian Join Date: Oct 2015 Location: Chennai
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15th May 2017, 21:14 | #407 | |
BANNED | Re: Recession Again ? Quote:
<Tangent> The real shortage in the country is the lack of true journalists. Those who go the distance in doing solid first hand investigation, collect first hand data to back up their claim and pen an article in the traditional sense. One that has a relevant headline, a story and a summary. Also credits the data source, and stands by that data. Who is studying journalism with a focus on macro economics and labor market anyways? In my observation, the smart ones are not. Because, nobody cares to demand such quality in reporting. <\Tangent> Last edited by prasadee : 15th May 2017 at 21:17. | |
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15th May 2017, 21:20 | #408 | |
Senior - BHPian | Re: Recession Again ? Quote:
Also, as an IT industry insider, I know that there are loads of people in the industry, at all levels, in each company (bigger the company, more such people), who can best be termed as burdens. We have a sample or two in each account. Shaking the tree shall weed these people out. Sadly, it is taking out a few good people too. Companies went on a hiring spree in the last few years. Now when the pipeline does not match the forecasts, cutting down on workforce is happening. Trump and US Visa problem can be tackled by increased offshoring and near-shoring. Companies are just using this pretext for firing/freezing. Using the automation/robotics part for downsizing is another lie - most of the folks I know are eager to learn automation (some have even learnt it on their own), but companies cannot give them enough opportunities. Now if someone learns a skillset, and you cannot give them task items for that skillset which you have mentioned is the next paradigm - who is to blame? Last edited by blackasta : 15th May 2017 at 21:23. | |
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16th May 2017, 08:06 | #409 |
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| Re: Recession Again ? @blackasta; Obviously. The jobs moving to the US are entry level while most of the redundancies in India are at the mid-upper echelons, and that too managers. One does no need to be a pundit to figure this out. |
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16th May 2017, 09:08 | #410 | |
Senior - BHPian | Re: Recession Again ? Quote:
Say company A uses an IT outsourcer B to get work done. The work volume is 3 person years. outsourcer B charges $20/hr rate and gets a team of 3 people to get the work done from offshore. One can be reasonably sure that one of these 3 guys is a person who is atleast 2-3 years experienced. If the work is niche the average team experience will go up. Total cost for a year for company A = $20 x 160 hrs (avg work hrs in a month) x 12 x 3= 115200 Now company A decides to hire US citizens to do the same work. Would they be able to hire 3 US citizens for the same cost? plus benefits? If not, who would take the hit - company A shall settle for a reduced profit margin, or company A shall pass on the cost to it's customers - the average US citizen? Are normal US citizens ready to pay that additional dollar? Last edited by blackasta : 16th May 2017 at 09:09. | |
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16th May 2017, 09:40 | #411 |
Team-BHP Support | Re: Recession Again ? Your example is bit too hypothetical for now. Outsourcing has not been banned. And jobs are not going back to USA, at least not to be done by people. Let's say offshore outsourcing is banned, company A wouldn't automatically consider hiring direct. There are reasons other than just cost, like logistics of HRM. Even when offshore outsourcing was not popular (late 80s, early 90s), US corporations (and government) relied heavily on contract employees. When I was in Bell Labs (NJ), all the work was being done within the company. More than half the staff were not employees, but very few were non-citizens. In fact, most contract staff were former employees who re-joined as contractors while making more money. The company didn't mind paying more to former employees who were doing the same work on contract basis. But when the project got cancelled, contract staff vanished right away and employees hung around doing nothing. However, they didn't let go contract staff from TCS (like me) because we were too cheap to let go. Ultimate VFM we were... So I got to laze around for 2-3 months until the next project started. |
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16th May 2017, 09:55 | #412 | ||
Distinguished - BHPian | Re: Recession Again ? Recession in manufacturing sectors too, targets executives, blue collared workforce are exempted. Ford plans to cut global workforce by 10% of its salaried workforce in North America and Asia. Quote:
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16th May 2017, 10:06 | #413 | |||
BHPian Join Date: May 2009 Location: --
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Few questions to both of you just to help me understand the situation better- 1. We say that companies would provide training only for immediate goals/requirements but not future ones. If you consider the trainings provided to freshers, it still doesn't have any of the new technologies coming up. It is still the rudimentary Java, .Net etc. Why is that? These freshers are put in projects which are just support projects and then laid off saying they have no skills. I personally know people who took course to stay relevant but got laid of saying they do not have a project experience even though they have the skillset 2. If the question for a person is to have technological relevance then why are the job losses only in India and not abroad at least in terms of scale (even if we consider relative to the % of workforce in the 2 regions). Many here, if not all, are to some extent way more technologically relevant than those there still the number of layoffs here is way more than there. 3. What about the structure of a person having to moving into a people/project management role after a particular experience level? (please leave out exceptions but if you ask around you will see majority have had to move away from coding for reasons explained in my earlier posts) 4. If we say its about money, then why does a manager get paid more than a techie counterpart. Atleast thats how it works in most companies for now. When a techie does not see an incentive in being into coding, there is not much to hold him because at the end of the day all of us work for Vitamin M Quote:
Sorry sir but it has already happened. Some firms I know of, have laid of people in India for US specific hiring. Some of them came in the news but some did not but it is actually happening. | |||
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16th May 2017, 11:29 | #414 | |
BHPian Join Date: Aug 2009 Location: Bangalore
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If they need people to be on work, this strategy of firing in India and hiring in US wont work for long term; they would bleed financially. Of course, as part of news, some of the Tech giants are quoting numbers of hiring in US, but that must be perceived as a way to keep investors and governments happy. | |
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16th May 2017, 13:03 | #415 | |||||
Team-BHP Support | Re: Recession Again ? Quote:
The current recession is caused by structural unemployment. Quote:
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These can only be exceptions. In general, this is not economically viable. Unless offshoring is banned, I don't see it happening. Last edited by Samurai : 16th May 2017 at 13:04. | |||||
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16th May 2017, 14:23 | #416 | |||||||||||
Team-BHP Support Join Date: Jul 2010 Location: Bangalore
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Automation reduces manpower needs by definition. An automated process means less manual intervention, ergo less headcount required to provide that intervention. 'X' highly-skilled resources are no use to a company if they only need 'X/2' to keep their business running smoothly. Nothing to do with skills, it's a capacity-based decision. Quote:
Contractors may cost more than a full-time employees (FTE) upfront, but contractors are usually not paid equivalent benefits (which can be significant amounts in the West compared to India), and can both be hired and let go based on variable requirements far quicker than an FTE. Indian IT has lost its primary advantage, cost effectiveness, and doesn't have a significant alternative to offer. We had a huge head-start and the know-how to build a value-driven ecosystem, but everyone took the easy way out to make the quick buck. China is ramping up quickly and the next arm of Indian IT under threat is going to be BPO services, and there are several others competing for the same pieces of pie. The carnage is just beginning. Quote:
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That's just one factor, there are plenty others. Quote:
Companies have no choice but teach such candidates basics before any task-oriented training can be provided. New technologies don't even get into the picture, because companies working on cutting-edge tech won't even be looking at such candidates in the first place. While the 'how will I get experience if I never get to work' is a perennial catch-22, most companies either don't have the time or inclination to build resources ground-up. They'd rather just hire a readily available resource. This kind of short-sighted vision is exactly what's gotten them into the mess they're in today. Employers like Samurai do focus on holistic training, but they're unable to compete financially. Given the choice between a better salary today or better training for the future, no prizes for guessing what most in the IT workforce will choose. Why blame employers alone, when both sides are choosing short-term benefits over long-term development? Quote:
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Everyone needs money, but not everyone works for it. In my mentor's words: "Life's like a laboratory experiment. Some people put money in the 'objective' column, others in 'apparatus required'. You choose which group you want to join". You're way off the mark assuming everyone is solely motivated by Vit. M. Quote:
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16th May 2017, 14:42 | #417 |
Senior - BHPian Join Date: Apr 2014 Location: Bengaluru
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| Re: Recession Again ? The prime factors (well atleast from my perspective) which I believe that is causing this are : 1. All major companies have set up(or on the verge of setting up) their own tech COE's. Majority of the work is now being done in house. They are becoming self sufficient more and more. 2. Offshoring work is more towards having a cheap workforce only. The managing part is being done by the client themselves. So there goes the roles of PM's, PL's , TL's. 3. Projects being implemented in Lean/Agile way. So the expectation of the clients are simple. Entire team should be cross skilled. No dependency on any one individual and no SME's in the team. Earlier teams would have an analysts team, testing team and dev team. Now its all called dev team. No or very few analysts (requirements come directly from business) and others would work on developing/testing the application/product. I still remember what many of my seniors from the industry had told me when I was a newbie," IT is no different than a govt job. You need to be in the good books of your manager's to get good hike, work or onsite.". I used to always contest this and say that as long as one is talented and hard working no need to do any of this. Work speaks for itself. I guess the people who were like that earlier are the ones to be afraid now. |
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16th May 2017, 16:04 | #418 | |
Senior - BHPian | Re: Recession Again ? Quote:
Regarding a company's objective being to train people to match task requirements - the companies have been stating that the next big thing is automation. So people learnt/were made to learn the same. Now the companies cannot provide promised work those very people, whose expectation has been set higher after learning something new. Regarding contract labor - all offshore/onshore outsourcing is contractual. So there is absolutely no cost advantage by firing 3 contractors in India and hiring 3 contractors to do the same task in USA. Last edited by blackasta : 16th May 2017 at 16:10. | |
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16th May 2017, 16:46 | #419 | ||||||||||||||
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The companies obviously charge this back to the clients/customers. So basically now services get more expensive for them. Quote:
Why should a fresher be put only in a support project? Why not use them for projects say in big data or data analytics? Quote:
The question was where in a techie in most cases, basis his experience is slowly and gradually moved into a project management/people management role. In most companies, people dont get an option to not have reportees or stay pure technical. Have quoted examples earlier of people who tried to do that failed at it Quote:
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Also you would have noticed that IT services companies have been taking in freshers from any engineering stream, specialization notwithstanding. How do they expect a chemical/mechanical engineering student to write a code when they have never been taught about it? This is why they have a basic training, which is again is a rushed through program in most organizations that too on the mainstream technologies . Quote:
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1. No new technology trainings to new workforce being inducted and then cry about not having a trained workforce on newer technologies 2. Not able to give work to people who have the skillsets because of which they lose the motivation. So how do you blame the employee in that case? 3. Same rant of moving people away from technical skills to management and that is how the industry is structure. Most firms dont give an option to stay technical. Quote:
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16th May 2017, 16:52 | #420 | |
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Infractions: 0/1 (5) | Re: Recession Again ? Quote:
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