June 03, 2005
India Still A Bargain Outsourcing Destination
Despite concerns that rapidly increasing wages will soon make India uncompetitive as an offshore outsourcing destination, a recent report indicates otherwise. While certainly not the cheapest destination for IT outsourcing, (Vitnam's rates are roughly 40% cheaper), it is still widely agreed to be the world's best bargain. This is a rather surprising result considering the vastly increasing demand for Indian labor which has driven the average salary for an IT worker to $5,443. Surprisingly, China, India's primary offshore outsourcing rival is already higher priced (avg. IT salary of $5,460) than India despite not having much of the service infrastructure India does. It was previously presumed that companies were remaining with India as their outsourcing destination because of remaining contracts, business history, or service quality. This report indicates, however, that in addition to these attractive attributes, India remains one of the financially most competitive IT outsourcing destinations. InformationWeek Reports:
What's surprising about neoIT's findings is that India, where offshoring has boomed over the past several years, remains one of the least-expensive destinations despite skyrocketing demand for its labor. Entry-level workers in India earn an average salary of $5,443 and midtier workers about $8,400, while experienced managers pull in roughly $13,100. India still has "an abundant supply of competent labor" to keep prices in check, neoIT says.
Read More: Offshore Salaries: Vietnam Is Cheapest, But India Is Still A Bargain
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