When it comes to hiring middle managers today, Indian software services giant Wipro Ltd. does more than just discuss pay and benefits; the company also conducts a thorough interview process that includes assisting the new hire with housing needs, compensating those who do not give enough notice when quitting their previous jobs for lost wages, and even assisting with their children`s school admissions.

According to Banerjee, president of Wipro`s enterprise solutions, we must provide them with virtual valet service.
Given that the outsourcing industry in India grew by 35% in 2004 as big multinational firms and smaller U.S. and European businesses switched businesses to Indian organizations, Wipro should be more active in recruiting new clients. Over the last two years, entry-level salaries have increased by a similar amount, whereas midlevel manager salaries have increased by 30% annually, reaching a median of $31,131.

According to Chitanjit Banerjee, director of human resources at Quest Research, as salaries rise, many
businesses, particularly in the call center industry, are finding it difficult to operate successfully in India. Currently, 1 million people work in the sector in India, but Nasscom, the country`s software industry association, predicts that figure will double by 2008.OJT can bridge the gap, but it is costly. Sykes Enterprises, a Tampa-based call center operator that has been operating in India since 2002, announced in January 2005 that it would transfer a large
portion of the work currently performed by its Indian operators to centers in Manila, the Philippines, and Shanghai, China.

According to Nasscom officials, the sector requires 15 to 20% more midlevel executives than it can find. According to Ajit Isaac, Chief Executive Of Bangalore Headhunter Adecco Seopleone Consulting, "the shortage has gotten worse as employees cash in stock options provided in the last few years and start looking for a better deal." According to Isaac, more than 25% of middle managers contacted him regarding job opportunities. At Accenture, senior managers meet with software developers and call center employees for at least an hour every two weeks to ensure they are aware of any issues on the shop floor. Wipro, for example, recruits top performers into accelerator programs and pays for project management certifications on occasion as part of its effort to identify leaders early on. Employees who work in call centers and provide round-the-clock customer service are exempt from paying half of the $2900 annual tuition for a business diploma from the Indian Institute of Management in Bangalore.

According to Goswani, a senior manager at Covergy, the company has improved internal training for units and hired 10% of project managers from outside, up from 75% three years ago. According to Nasscom, 20.000 tech professionals have relocated to India from abroad in the last three years. Despite the fact that compensation
for midlevel managers will continue to rise, many Indian executives claim that their companies are profitable enough to cover rising labor costs. Employers should find it easier to find qualified employees in the coming years now that Indian institutions are offering project management and back office processing courses.

QUESTIONS:
1. Are there too many or too few workers available for Indian enterprises that provide computer services,
according to the information provided in this situation? Describe the factors influencing labor demand
and supply in terms of variables.
2. What steps have the companies taken in this situation to address their human resource needs?
3. What other steps could companies take to better align their human resources with projected demand?

Question

When it comes to hiring middle managers today, Indian software services giant Wipro Ltd. does more than just discuss pay and benefits; the company also conducts a thorough interview process that includes assisting the new hire with housing needs, compensating those who do not give enough notice when quitting their previous jobs for lost wages, and even assisting with their children`s school admissions.

According to Banerjee, president of Wipro`s enterprise solutions, we must provide them with virtual valet service.
Given that the outsourcing industry in India grew by 35% in 2004 as big multinational firms and smaller U.S. and European businesses switched businesses to Indian organizations, Wipro should be more active in recruiting new clients. Over the last two years, entry-level salaries have increased by a similar amount, whereas midlevel manager salaries have increased by 30% annually, reaching a median of $31,131.

According to Chitanjit Banerjee, director of human resources at Quest Research, as salaries rise, many
businesses, particularly in the call center industry, are finding it difficult to operate successfully in India. Currently, 1 million people work in the sector in India, but Nasscom, the country`s software industry association, predicts that figure will double by 2008.OJT can bridge the gap, but it is costly. Sykes Enterprises, a Tampa-based call center operator that has been operating in India since 2002, announced in January 2005 that it would transfer a large
portion of the work currently performed by its Indian operators to centers in Manila, the Philippines, and Shanghai, China.

According to Nasscom officials, the sector requires 15 to 20% more midlevel executives than it can find. According to Ajit Isaac, Chief Executive Of Bangalore Headhunter Adecco Seopleone Consulting, "the shortage has gotten worse as employees cash in stock options provided in the last few years and start looking for a better deal." According to Isaac, more than 25% of middle managers contacted him regarding job opportunities. At Accenture, senior managers meet with software developers and call center employees for at least an hour every two weeks to ensure they are aware of any issues on the shop floor. Wipro, for example, recruits top performers into accelerator programs and pays for project management certifications on occasion as part of its effort to identify leaders early on. Employees who work in call centers and provide round-the-clock customer service are exempt from paying half of the $2900 annual tuition for a business diploma from the Indian Institute of Management in Bangalore.

According to Goswani, a senior manager at Covergy, the company has improved internal training for units and hired 10% of project managers from outside, up from 75% three years ago. According to Nasscom, 20.000 tech professionals have relocated to India from abroad in the last three years. Despite the fact that compensation
for midlevel managers will continue to rise, many Indian executives claim that their companies are profitable enough to cover rising labor costs. Employers should find it easier to find qualified employees in the coming years now that Indian institutions are offering project management and back office processing courses.

QUESTIONS:
1. Are there too many or too few workers available for Indian enterprises that provide computer services,
according to the information provided in this situation? Describe the factors influencing labor demand
and supply in terms of variables.
2. What steps have the companies taken in this situation to address their human resource needs?
3. What other steps could companies take to better align their human resources with projected demand?

Accepted Answer

The sector needs 15% to 20% more midlevel executives than it can find, according to Nasscom…

1. Are there too many or too few workers available for Indian enterprises that provide computer services, according to the information provided in this situation? Describe the factors influencing labor demand and supply in terms of variables.