New Delhi: India Inc. is set to continue its recruitment drive with executives from the country emerging as the most optimistic in the world about hiring plans, even though jobs through outsourcing route may see a downslide.
According to international consultancy firm McKinsey, companies across the world are mostly planning to increase their headcount in the next six months with firms planning new hirings being double of those looking for job cuts.
Besides, executives in India “remain by far the likeliest to hire,” McKinsey said quoting a survey of 2,700 executives around the world.
However, job creation in low-cost countries like India could see an adverse impact of global giants’ plan to hire mostly in their home countries.
Outsourcing has emerged as a major source of jobs in India in the past few years, with companies from the western countries moving some of their operations to low-cost offshore locations.
Another survey by technology research firm Forrester showed that the US and European companies were not satisfied with cost savings achieved through their IT-related outsourcing and might seek to bring some jobs back.
Some industry observers are still hopeful that new jobs coming through outsourcing would not come to a halt, although majority of outsourced jobs could involve new functions.
HR consultancy firm MaFoi’s associate consultant Vansh Joshi said, “Specialised form of outsourcing like KPOs (Knowledge Process Outsourcing) or RPOs (Recruitment Process Outsourcing) are set for a forward march. Basic processes like voice-based processes will lose its sheen.”
“More than half of the executives at companies headquartered in developed world say the majority of their new jobs will be created in the same country as the corporate headquarters,” Mckinsey added.
In the McKinsey survey, only 25 per cent of the executives worldwide said that functions performed abroad would be identical to those which presently or in the past were performed in their home country.
Executives from around the world indicated that getting “the same work done elsewhere is not high on their agenda.”
Among those who plan to hire mostly in overseas nations, more than two-third expect the majority of new jobs to consist new functions and only a quarter said most new jobs created abroad would be same as those now performed at home.
Notwithstanding the shift in trend of offshoring jobs to low-wage economies, the McKinsey survey found that hiring plans of Indian companies remain upbeat.
Businesses in China and India, where most of the offshore jobs were thought to be going, “seem to be thriving even with relatively few jobs coming from companies in developed economies.”