Oct 5, 2005|
India has arrived! India's century! India shining! Wait! Stop here! And start thinking! Has India really arrived? Is India really shining? The way the Indian economy is growing, and the way competition is getting hotter, India Inc. is facing a crisis of sorts - something that was never a point of consideration for Indian companies in the past. The crisis relates to 'people' and despite boasting of the second largest population in the world, India Inc is facing 'people problem'.
We know of companies that have large war chests (cash), having the ability of paying world-class salaries and still not being able to find good project managers to take over the growth mantle. And we know of other companies that are leaders in their respective sectors and are still are not able to retain key personnel being carried away by the lures of foreign shores and dollar dreams! So, where is the people power to carry India on a path of sustainable growth and development?
Well, the people problem lies not only with the Indian IT/ITES companies but has now spread across the gamut - also affecting the old economy companies. The issue is especially grave for some of the leading engineering companies in the country that are seeing engineers leaving in droves. In fact, attrition rates in the Indian engineering sector have soared to around 15% and in some cases, to 20% levels. Engineering is a high skill-intensive industry and like a software company, it needs skilled people to grow larger and scale up for taking bigger and more complex contracts. The problem has now become so grave that while people are leaving in hordes, companies are finding it difficult to get due replacements. Also, most of the people, as we gather from some of the managements, are leaving to work for new economy technology firms.
As a top official in India Inc puts it, "The problem earlier was retrograde government policies, the problem now is talent shortage. The future war will be fought based on who's got the best talent. Our biggest challenge is to attract talent laterally and to retain our talent pool."
Considering these facts, we wonder that if this kind of exodus of talent continues from leading Indian engineering companies, who will build India's roads, ports and bridges. Just who will? And how will the economy chug along on a sustainable growth path (ironically) to align itself to the 'sky-high' expectations from the stock markets?
More Views on News
Jul 25, 2017
Equitymaster HQ has been infiltrated. Valuable stock ideas have been leaked. Who's responsible?
May 27, 2017
What happens when minority shareholders are short-changed in the normal course of business?
Feb 15, 2017
PersonalFN believes SEBI has taken a step back-apparently in the admission of it going overboard with the regulations.
Aug 24, 2016
And here's your chance to claim a free copy of this book...
Aug 12, 2016
And Why India's demographic dividend could turn out to be a doubtful debt...
More Views on News
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
Aug 10, 2017
Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407