According to Tim Sullivan of the Associated Press India is cannot graduate students fast enough to meet the demand for high-tech employees. It appears that twenty years after India’s emergence as an international center for high technology it is now running out of workers to fill industry needs.

While from the outside, it may look like India has an endless supply of cheap labor the problem appears to be that out of the 400,000 new engineers that the country turns out per year only 100,000 of those are ready to enter the high-tech job market. Apparently, the major problem in training consists of poorly equipped schools (many without computer labs) that teach theory but forego the most basic communications skills. Mohandas Pai, human resources chief for Infosys Technologies states that the problem is not the availability of workers but rather the availability of trained workers. As a result, Infosys opened the Mysore campus to train their own employees laying out millions of dollars in a frantic attempt to ensure their profit-making machine continues to produce.

Since 2000, industry demand has increased from needing 50,000 new workers to estimates that by the year 2010 the industry will face a high-tech employee shortfall of 500,000 applicants to fill new positions. This situation is the result of the population being unable to keep up with a rapidly progressing high-tech market and its demand for high-end workers. American companies, doing business in India include Accenture and IBM both of which will need to hire masses of people before the year 2010. A shortage will mean higher wages, a situation that is feared in India since it could mean a shift of some jobs to Poland, the Philippines or even back to the states that could result in a destabilization of the India high-tech market.
[tags]India, High-tech, employee shortage, IBM, Accenture, Too few skilled workers[/tags]