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Body shopping
Body shopping is the practice of consultancy firms recruiting workers (generally in the information technology sector) to contract their services out on a tactical short- to mid-term basis. IT services companies that practice body shopping assert that they provide real services (such as software development) rather than the "sham" of merely farming out professionals to overseas companies.[neutrality is disputed]
Body shopping in IT originated during the mid-1990s when there was a huge demand for people with mainframe, COBOL and related technology skills to prevent systems being affected by the Y2K bug.
Most specialist Y2K consulting companies operating in the US, Europe, the Middle East, Japan and Australia outsourced their technical manpower requirements to companies operating in India.
During 1996–97, such companies based in India responded to the heavy demand by recruiting and training local Indian graduates specifically for Y2K. Their consultants either worked onshore or offshore at high use rates, generating huge profit margins and cash reserves. The high profit margin during this period resulted in fast growth and sufficient assets to invest and expand operations to other IT related business segments after Y2K.
In the modern era of IT off-shoring, outsourcing, and cloud computing, it is widely accepted that IT service companies' strategy (especially for those operating with a huge technical manpower base in India) still continue to focus on similar lines. The companies that do body shopping are renowned for training and developing technical skills for a wide range of client base that is of current demand. Researchers point out that many Indian companies focus heavily on developing a large pool of human resources with technical skills creating a marketplace to 'buy' technical skills on an hourly or daily basis.
This led to significant market developments in two areas in the early 2000s:
According to a U.S. Citizenship and Immigration Services report to Congress, for fiscal year 2012, 59 percent of H-1B visas went to computer-related occupations. The same report also cited that 64 percent of the H-1B visa petitions granted were given to workers originating from India.
Body shopping companies mainly recruit off-shore and provide training to their employees using their off-shore facilities.
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Body shopping
Body shopping is the practice of consultancy firms recruiting workers (generally in the information technology sector) to contract their services out on a tactical short- to mid-term basis. IT services companies that practice body shopping assert that they provide real services (such as software development) rather than the "sham" of merely farming out professionals to overseas companies.[neutrality is disputed]
Body shopping in IT originated during the mid-1990s when there was a huge demand for people with mainframe, COBOL and related technology skills to prevent systems being affected by the Y2K bug.
Most specialist Y2K consulting companies operating in the US, Europe, the Middle East, Japan and Australia outsourced their technical manpower requirements to companies operating in India.
During 1996–97, such companies based in India responded to the heavy demand by recruiting and training local Indian graduates specifically for Y2K. Their consultants either worked onshore or offshore at high use rates, generating huge profit margins and cash reserves. The high profit margin during this period resulted in fast growth and sufficient assets to invest and expand operations to other IT related business segments after Y2K.
In the modern era of IT off-shoring, outsourcing, and cloud computing, it is widely accepted that IT service companies' strategy (especially for those operating with a huge technical manpower base in India) still continue to focus on similar lines. The companies that do body shopping are renowned for training and developing technical skills for a wide range of client base that is of current demand. Researchers point out that many Indian companies focus heavily on developing a large pool of human resources with technical skills creating a marketplace to 'buy' technical skills on an hourly or daily basis.
This led to significant market developments in two areas in the early 2000s:
According to a U.S. Citizenship and Immigration Services report to Congress, for fiscal year 2012, 59 percent of H-1B visas went to computer-related occupations. The same report also cited that 64 percent of the H-1B visa petitions granted were given to workers originating from India.
Body shopping companies mainly recruit off-shore and provide training to their employees using their off-shore facilities.