Indian IT woes good for SA

This could curtail further growth for the country in the fast-emerging outsourcing marketplace.

This, however, according to Org Geldenhuys, a director of IT recruitment and executive search company Abacus Recruitment can only "spell good news for South Africa".

Recent reports from India reveal that there will be a possible shortage of 262 000 professionals by 2012, raising concerns that India could lose out to other countries - like South Africa - that are rapidly gaining in popularity for proposed outsourcing deals.

Citing information from the National Association of Software and Service Companies (Nasscom) in India, Geldenhuys said the association is urging universities to improve their courses and to train students more proficiently.

"Gartner is now predicting that India could start losing out to Eastern Europe in the burgeoning outsourcing market.

"Frankly, I believe South Africa also has a good chance of stealing some business from them if they slack off too much," Geldenhuys said.

There are some 2.5 million graduates every year in India. But Nasscom regards this as "very, very small" in terms of the employable pool.

India's IT and outsourcing industries exported goods and services worth US$12.5bn in the 2003/4 fiscal year, with software exports expected to grow by 30% in the year to March 2005.

"The latest figures show that outsourcing totalled 29% of India's total software exports.

"So if they are going to face a skills shortage in the future it is going to impact significantly on their economy and their overall GDP growth," Geldenhuys asserted.

"But right now they are still one of the biggest players in the IT and outsourcing markets.

"Seven years might still be some time off, but other countries should start making plans right now to capitalise."