Soon we will be “BANGALORED” – So lets be prepared for it rather than being shocked

Thanks for the wonderfull feedback both online and offline on my last Facebook note on my experiences with UPE ( in fact this new note is an outcome of discussion on the same topic and my own reflections.

In my previous note i wrote how low level jobs like those of labourers , delivery boys , cooks etc is slowly seeing “BIMARURED” (My version of “Bangalored” , but workers migrate from Bihar ,UP to down south BIMARU stands for Bihar , Madyapradesh,Rajastha UP  ). This is happening as we see higher education rates down south driving more and more people into white collored  and blue collared jobs creating a vast deficit in lower category of unskilled workers like labourers , delivery boys , cooks etc .  Now this deficit can be met in two ways i.e pay higher wages to get educated people to work for you else import workers from other parts of India   and loh we have our own version of being “Bangalored” called as  “BIMARUED” ..


A deeper look at the similarties in what is happening here and what happened in west is a bit eye opening because on closer look one can see similar characteristics in IT , BPO and other spaces where rising costs of employees in the developed economies forced the companies to innovate and they found answers in India’s educated mass which was raring to work as the opportinties were less during those days . So companies first imported staff via Body Shopping outfits and then soon indian companies come up with the concept of outsourcing and offshore delivery centers.  All this was driven by the quest to control costs hence there was innovations which were thought about and these innvoations are the reason why we as IT professionals are existing today and reaping the benefits.  So at the core of it the drivers for this are “Quest for Lower costs” else IT Gaints from develeoped companies would never have ventured into Outsourcing market…. and we would not having been reaping this benefit of high salaries 🙂


Now lets consider the background , today driven by IT demands we have 1000s of Engineering colleges which have sprung up in all parts of India . Even UP now boasts for 200+ Engineering colleges . I read in the paper today that 2011 will be the year where we will have highest recruitments by IT and due to this competition for  talent we see that companies are paying more and more salaries to their employees . Slowly this is taking us in the higher brackets of costs and we are no longer as cheap as we were few years back. Given this scenerio  it is a matter of time when some innovative companies (next generation Infosys , Wipro)  would soon find a talent pool which is cheaper than India  and then it will lead to our jobs being “BANGALORED” to the new destination.


So we may be proud of our achievements in IT industry but we need to remember that this industry is born because of the basic economic need to cut costs after a “BULL run” in employee costs in developed economies  and there is every possibility of the same repeating here again  and then we will start undergoing the changes which people in developed economies went through…

I always love to quote the analogy which i beleive is true for almost all markets  whether it is real estate , stocks , commodities (in fact every economic activity) is when your nieghbour starts giving stock market tip daily then its is time to get out the the market as it is during the peak that we see almost everyone will start behaving like stock pundits and boast of gains made in stock exchange. It is precisely this momemt that one needs to bail out from the stock market as the markets will crash after hitting a peak..

To me it seems like we are into a similar situation with regards to IT industry in India , where we are seeing recruitments in hoards and hoards without looking into quality (how can one explain Infosys picking wup 180 students from a single college)  and combined with rising costs of employees we are headed into a double whammy  of  excessive optimism and new destinations for outsourcing emerging…


My point of writing this article is to highlight one fact “Be Prepared for changes” and we are not what we are only because of our capabilities it is also a function of outside forces.

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