US unemployment at 26-yr high, Hyderabad too faces heat
As far as the job market in the US is concerned the bottom is giving way. The latest figures show that unemployment has touched a 26.5 year high! The heat is being felt right here in Hyderabad. The first casualty seems to be the captives of US companies which had open end their centers in many Indian cities including Hyderabad. With wage rates falling in the US not to mention political pressure due to availing government assistance many companies are being forced to relook at the need for captives. And to add to that a bulk of these captives were in the back end office part of the banking sector, which essentially was catering to complex financial product. Thanks to the meltdown most of these products have themselves been pulled off the shelf. And hence the need to service them also is no longer felt said a senior executive in one of the (two) captives that is expected to shut shop by Dec 31 this year. Many in Bombay and Bangalore are expected to follow suit.
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