Softcore Consultancy Services is in the IT sector. It is currently facing a shortage of skilled labor
Question:
Softcore Consultancy Services is in the IT sector. It is currently facing a shortage of skilled labor and is experiencing an increase in employee salaries, which has been increasing over the past few years. While there is a large pool of skilled human resources, a shortage of skilled labor is felt across the industry, and that has resulted in rising wages. Salary jumps typically occur not only in the conventional way of being promoted, but also because professionals change jobs more frequently. The increase in salaries varies from job to job and ranks highest in the IT sector, where employees get a hike of more than 40 percent when they join a new business establishment. There is no shortage in entry-level human resources as there is ample supply, but severe shortages are felt in mid-level positions. According to the Softcore CEO, many new and third-party offshore facilities being set up in the country have led to competition for qualified human resources that are already in short supply. This is also causing a widening gap between supply and demand and an increase in the average salary level for all positions, as well as increasing attrition rates in existing facilities. There is a new trend of employees moving to multinationals abroad in search of higher salaries and global experience. The salary package and work environment factor are much better in countries like USA as compared to India. Then, returning to India with global experience paves the way for a higher salary and better position. This is also one of the reasons for the shortage of skilled labor and the increase in salaries of employees in the IT sector.
Read the case study above.
to. Outline the main reasons why IT companies in India are seeing an increase in salaries and wages. Compare and contrast the movement of labor in India and the Pacific region.
b. Discuss the pros and cons of labor movement within the Pacific region and especially for the developed economies in the Pacific Rim countries.
C. Explain whether globalization is good for the Pacific .
Expert Answer:
a The main reasons why IT companies in India are seeing an increase in salaries and wages are as follows 1 Shortage of Skilled Labor There is a shortage of skilled labor in the IT sector particularly ... View the full answer
