India: Desperately Seeking Talent

With India's economy on a tear, these are heady times for Bombay-based Larsen & Toubro Ltd. The company, India's top construction and engineering outfit, has seen its sales jump by 35% in the past year as Delhi boosts spending on roads and ports and India Inc. invests in more factories and office parks. But L&T Chairman Anil Manibhai Naik isn't celebrating. That's because he can't hire enough mechanical engineers to keep up with all the work. Despite boosting wages for rookie engineers by 25% -- to roughly $5,700 per year -- Naik is still losing potential recruits to the software industry, multinational competitors in India, or rivals in the Persian Gulf that pay twice his current rate. Says Naik: "Everyone is growing fast, and India is facing a talent shortage."