Ensuring India’s Offshoring Future
By Mckinsey
Clouds are gathering on the offshore horizon. Research by the McKinsey Global Institute (MGI) shows that India's vast supply of graduates is smaller than it seems once their suitability for employment by multinational companies is considered. In the country's most popular offshoring locations, such as Bangalore, rising wages and high turnover among engineers— the professionals most in demand for IT services— provide evidence that local constraints on the supply of talent already exist. And just as these bottlenecks are developing, other low-wage countries, such as China, Hungary, and the Philippines, is gearing up to challenge India's lead.
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