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Top outsourcing customers ask India IT firms to keep freshers out
Friday, 20th May 2011
Top outsourcing customers, including Amex spinoff Ameriprise and Capital One , are raising concerns over the increasing number of new engineering graduates employed by Indian and foreign tech firms in IT projects.

Already, customers such as Capital One-the Virginia bank that outsources to some of the top tech firms based in India and overseas-are demanding more scrutiny on the ratio of freshers working on critical projects.

TCS, Infosys and Cognizant derive nearly $100 million every year from these two customers. For long, outsourcing firms have been perfecting a model wherein they hire thousands of freshers every year, accounting for nearly 95% of overall recruitment. These fresh hires, after up to six months of training, are pushed into the system to ensure that offshoring remains cost effective despite a 10-15% wage inflation every year.
Publication : Economic Times
TAGS : campus  freshers  outsourcing  


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