Media reports had suggested in the second week of December that around 25000 of TCS’s senior level employees would be affected. The following week saw employees of 10-15 years of experience being indiscriminately sacked on a massive scale in the name of ‘restructuring’. When asked for an explanation, the organization offered no special importance to the terminations and maintained that the move was part of ‘workforce restructuring’ and is ‘nothing out of the ordinary’. They had termed it as ‘involuntary attrition’.
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- You can insource more complex systems/solutions
By the time you have explained your systems, completed analysis, testing, integration and re-factoring when dealing with outsource companies, you could well have delivered the same solution using in-house staff.
One of the main insourcing outsourcing dilemmas comes back to how complex the body of work is.
The more complex the system is the more likely insourcing will be able to deliver it on budget, on time and to a higher level of quality. The strange thing is that the business requirements just need to be sufficiently novel for outsourcers not to ‘grasp’ it. So the level of complexity could actually be quite basic (i.e. not that complex to your internal staff).
You always need to do more explaining and end up experiencing more rework when outsourcing complex systems.
Mukeherjee says employees subject to this were given three months of salary, all the medical benefits for the financial year and outstation agency help to find a suitable job. “Someone who has been in TCS for such a long time is not a bad person. It’s just that in our environment, they are not able to fit and grow the way we want them to.”
http://product-ivity.com/insourcing-vs-outsourcing/
And this is of course confirmation that the only way these offshore firms can compete with onshore resources is on labor rate. Obvious that they are getting rid of the employees with 10-15 years of experience and replacing them with freshers. I will always believe that experienced coders will out code (in efficiency and accuracy) freshers......but that they cannot sell. What they sell to naive management is that you can get your work done in IT for 25.00 and hour. Rework, rework, rework.