Infosys Still Humming, Despite Pressures
from the pushing-on dept
There have been a lot of questions raised about the business prospects for Indian IT outsourcing firms, particularly due to wage pressure, the strength of the rupee against the dollar and a shortage of talented workers. One of the big ones in this group, Infosys, has reported earnings that should help allay people’s fears, at least to some extent. While the Rupee is predicted to be a drag going forward, the core business, as measured in dollars, remains quite healthy. In other words, labor and currency concerns aren’t stopping the company from profitably carrying out its business, at least not yet. The fact that Infosys continues to thrive in spite of theheadwinds is likely a reflection of its recognition that it’s not just an “Indian” outsourcing firm, as they’re typically perceived as, but a global firm, with a range of value-added offerings that happens to have a large base in India.
Filed Under: earnings, outsourcing
Companies: infosys
Comments on “Infosys Still Humming, Despite Pressures”
Asian Education Sucks
Seriously, the news reports I’ve been reading lately about the quality of Asian education gives me the impression that we have nothing to fear. Academic standards are going down rapidly in the wealthier Asian nations; due to their ethnic homogeneity, young people have adopted a “let’s be stupid together” mentality and refuse to study. They have no role models in the form of poor immigrants who study harder than they.
At the same time, the people who do study hard are faced with a lack of job prospects. In some of the wealthier nations (Japan/Korea), employers shun people with advanced degrees because they are “too smart” and not the team-playing average joe. People in Japan/Korea are resorting to lying about their education to get jobs, which are open only to high school graduates. Employers in high-wage nations should be hiring people with advanced degrees to help them innovate, but they aren’t doing that — the pigheaded executives do not want smart young kids exposing their ignorance.
Asian economies have not adapted to the changing realities when they can no longer just be low-wage sweatshops copying Western products. To move beyond that requires profound cultural changes, which they have so far been unwilling to make.
Infosys Training Costs
A buddy of mine just graduated from a good university in the US with a computer science degree and was hired by Infosys. He is currently in India for 6 months of training and is getting a salary equivalent to about $5,000 US a year, and is yet living like a king in India.
In other words, just take the highly trained US employees to a place with a very low cost of living and pay them next to nothing (yet a S@#$ ton compared to locals) and everyone is happy.
Re: Infosys Training Costs
Your buddy may be living like a king now, but no matter how much he saves, it seems as if he won’t having anything substantial to bring back to the US. Does he plan on staying there forever?
Re: Infosys Training Costs
WOW .. either your buddy is fibbing or he is drinking water and eating air … last time I checked the average cost of living in cities (where most IT companies) are were astronomical… Please re-check your facts before spreading news that Indians have elephants to ride and snakes for pets .. time to wake up and take notice…
Re: Infosys Training Costs
“He is currently in India for 6 months of training and is getting a salary equivalent to about $5,000 US a year, and is yet living like a king in India.”
Buddy, this may be news to you but we’re now in 2007, not 1977. Mid level salaries are of the order of $5000/month. If he’s really living like a king, he’s probably too high or drunk to see the reality.
Infosys Training Costs
Re: dorpus,
India in NOT a wealthy asian country. Most of us are low middle class or poor. People are still motivated to increase their quality of life by working hard. On the other hand most Americans/Westerns are not motivated (unless you are an immigrant).
But I do agree. Education is largely motivated by employment opportunities and is of poor quality.
Re: Others
Living costs are high in Indian cities but still negligible compared to that of america.
Re: Infosys Training Costs
Don’t worry about it. Dorpus frequently goes of on wild tangents that have little, if anything, to do with the subject. I’ve learned to laugh at, and then ignore, most of dorpus’s posts.
@dorpus: ‘ethnic homogeneity’? Have you ever been to India, dude?