Indian outsourcing about skills not cost: Infosys

By Patrick Gray
24 April 2003 12:10 PM
Tags: infosys, ananda, rao, telstra, outsourcing, gray, india, patrick
Outsourcing and development giant Infosys has called for more education on the issue of sending IT work to India following the media roasting it received over a development partnership with Telstra.

Ananda Rao, Australia country manager for Infosys, told ZDNet Australia  that he's not upset about the treatment the company has received, but says people should learn more about the topic.

"I think rather than disappointed I say we should educate these type of media people more--they don't know the facts and figures," he said.

The fundamental problem, according to Rao, is the assumption that companies only outsource to India on the basis of cost.

"It's not about cost--it's about skills," he said.

Describing the Indian education system as -phenomenal" in the context of IT, Rao outlined the hiring policy for the Indian company, and put forward some astonishing statistics.

-A rookie goes through 18 weeks of intense training before they're allowed to touch a computer and everyone has to be a graduate coming from the top 5-10 percent of their [engineering] class," he said. "Last year, we received 400,000 qualified applications...we chose 4,000".

Australian IT workers often become jaded over working with old legacy systems, Rao said. Indian companies can take some of the -leg work" away from young IT workers who prefer to work at the cutting edge.

"Let us look at the complete spectrum...look at the young kids that come out of schools. They're not interested in working with legacy systems here in Australia...they become dispassionate".

Sending this type of work overseas represents an opportunity for Australian companies by providing them with access to more resources so they may implement ideas that would have otherwise been left undeveloped, he said.

Rao dismisses as untrue claims that wages for their workers were as low as AU$12,000 a year.

"That is definitely a good wage in India [but] we pay more...otherwise we cannot attract the best talent," he said.

Managing director of Melbourne based data centre and development house Imagineering Technologies, Matthew Proctor, said he'd considered sending work to India before.

-We have looked at it...the costs are very attractive but the commercial risk is too high for us," he said.

Although he has never engaged the services of offshore code factories before, Proctor can understand why larger companies do. He agrees with Infosys' Rao--outsourcing to India is about resources, not just cost.

-This is a global industry that we work in. If we had the resources here in Australia we'd do it here," Proctor said, adding that India has excellent infrastructure and an enormous number of skilled workers, so it made sense to take advantage of that.

Talkback 10 comments

    “If we had the resou ...Anonymous -- 24/04/03

    “If we had the resources here in Australia we’d do it here,” Proctor said

    ....then please explain why so many IT workers are currently un-employed in Australia, just what skills can you not find in Australia ?????

    With thousands of unemployed IT workers in this country, it is a disgrace that this work is being sent overseas

    It makes you wonder whether th ...Anonymous -- 24/04/03

    It makes you wonder whether these people even bothered looking or advertising for these skills in Australia... I'm unconvinced that this outsourcing has anything to do with the skills available in Australia and everything to do with the cost benefits. I know all too many IT professionals who would be willing to do anything for work at the moment... This company and Telstra disgust me and should be ashamed of what they have done. There should be government legislation preventing outsourcing of jobs which can be filled by australian workers... It should be their responsibility to prove that the skills are not available in the country before they are allowed to send the jobs overseas.

    The skills are oversold by the ...Jim Papadopoulos -- 24/04/03

    The skills are oversold by the outsourcing companies. We have been given people with poor skills and in one case a specific skill was nonexistent. The company was very apologetic and sent him back to India and had him here free of charge till a replacement came.

    This person replaced a local worker that did have the skills but we were told his position was redundant. When I asked about the person filling his seat doing the same job I was told the new person is just a contractor.

    Sounds like scab labour to me! I'm glad its finally exposed as a scam to put our people out of work.

    Ceos and board members are payed outrageous sums of money event when they do a bad job. The money saving effort comes in selling out people beneath you on the food chain. You should be ashamed of yourselves.

    why not hand out ALL of our jo ...Anonymous -- 24/04/03

    why not hand out ALL of our jobs to overseas workers...

    Politicians are a dime a dozen, I'm sure we could outsource and get people with better skills... The US has some fine ex-presidents who are much more qualified to run the country than any current leader of either Party!

    Its is ONLY ABOUT COST SAVINGS ...Anonymous -- 24/04/03

    Its is ONLY ABOUT COST SAVINGS at the expense of Aussie workers so the share price may rise 20 cents and fill the pockets of greedy shareholders and directors.

    The only concern of the corpor ...Scott Bilby -- 24/04/03

    The only concern of the corporate world is short term profit. The outsourcing of jobs to India is merely one example of the greed that subverts the rights of people all over the world, and justified in the name of a perverted form of 'globalisation'.

    I agree with everyone here. It ...Anonymous -- 25/04/03

    I agree with everyone here. It is all about making a profit and has nothing to do with skills.
    Rahul Chand
    ASP Programmer
    http://www.softwareatlantis.com

    It's not about skills--it's ab ...Anonymous -- 26/04/03

    It's not about skills--it's about cost.

    We can at least warn school kids to keep out of this dead end business. There's no future in IT.

    This is pure b.s. You talk to ...Anonymous -- 26/09/04

    This is pure b.s. You talk to anyone in the companies like 3M that use outsourcing and you will find it has EVERYTHING TO DO WITH THE MONEY. They are doing it to cut costs, it has nothing to do with job skills.

    Indian skills? Joseph Jones -- 19/09/08

    Rao is insane. It is all about the cost and every CIO will confirm this. Let me say this about Indian IT workers off-shore and on-shore. They are just like us and every other IT worker in the world. There are great and skilled and there are poor and unskilled. Education, boot camps and the like are just a marketing ploy to attract clients, and the sad thing is our non-IT folks buy into this crap because they really have no clue. I have my MS in CS and I am working on my PhD and have several Java and IBM certifications, AND while these are great; I am great at what I do because I am passionate about the work. If you are not passionate about your IT solutions, or a genius than you are just another mediocre IT resource.

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