Wednesday, April 18, 2007

Indian IT Outsourcing Firms Plan To Keep Staff With Double-Digit Salary Raises -- Outsourcing

Indian IT Outsourcing Firms Plan To Keep Staff With Double-Digit Salary Raises -- Outsourcing

$30K may be less than a US Tech worker would make, but still puts these folks in the lower-upper class of their economy. The average indian takes home $300/year, which call center folks taking home $3000 per year (http://www.webprowire.com/summaries/1512592.html). Compare that with the $30,000 an IT pro can make? There is no disparity like this in the western economy. An IT pro here may make $60K, but the helpdesk/call center guy down the way is making $35-40K, oh and the average American is making around $30K. The American GDP percapita is $43,000 vs. the Indian GDP percapita of just over $3,000 - some huge disparities. So when we compare the salaries we must also understand that part of that cost includes 15%-30% yoy increases in indian salaries. So that $30K resource today will quickly outstrip the american resource - which means that if the american salaries increase at 2.5% - which is agressive, the Indians will outpace salaries in 4 short years. 4 years in IT is an eternity, but lets face it - reduced skill, firing and moral issues in the us will impact our ability to control these costs longer term. Americans need to get serious about IT - realize that there is a cost to technology and apply it judiciously instead of willy-nilly. Stop stripping the buying power of highly educated and creative americans for off-shore mediocre work. Send the crappy support jobs out - spend time being innovative but don't kill the power of technology at home.

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