Indians earn more than Chinese bros

BANGALORE: Average compensation paid to Indian techies, both new hires and managers is not vastly different from what their counterparts earn in China, the other emerging competitive offshore destination in Asia. It is much lower in Vietnam, often talked about as a possible threat to India.

The average annual entry level salary in India is $5443 and $13124 is what a manager with 5 to 8 year experience earns. It is almost similar in China where freshers are paid $5460 and experienced hires $13732.

Salary in Vietnam is much lower. Freshers are paid $3276, while experienced hires get $8571.

The difference is marginally bigger in Philippines where the salary for freshers and managers are in the $6930 and $17425 range. The gap between the aver-age salary handed out in India compared to Singapore and Malaysia is however wide.
Entry level salaries in Malayasia and Singapore is $12455 and $23532 respec-tively, while for managers it is $30580 and $60156.
An offshore and nearshore ITO salary report 2004 compiled by NeoIT, the off-shore advisory and management services provider says that cost savings is the most significant factor driving global services sourcing.
Among the several cost components, wage differential between onshore and offshore or nearshore locations provides the most compelling reason for global sourcing of IT services.
The report points out that the wage rate in offshore locations forms 35-45% of the total outsourcing cost, while it is 55-65% in the case of nearshore
The wage differential between onshore and offshore locations is significant enough to offset the additional costs that are incurred in the process of opera-tionalising an offshore outsourcing initiative.
With offshore salaries being 70-75% lower than onshore salaries, organisa-tions can gain enough leverage to realise a 20% to 30% absolute savings on the overall initiative.
The wage differential between onshore and nearshore locations is not as sig-nificant, but as the additional costs of outsourcing to a nearshore location are much lower than outsourcing offshore, companies can generate around 10% to 15% in savings the report says.
The complexity of services delivered and skill set requirements of employees play a major role in determining salaries for IT professionals. From an out-sourcing industry perspective, technology competency has the maximum im-pact on salaries.
Salaries of employees engaged in specialised technology solutions are much higher than the industry average, while employees doing common low end technology work get paid much below the industry average.
When compared to Asia, the average salaries paid to IT professionals in the EMEA (Europe, Middle East, and Africa) region is large.
Nearshore locations in EMEA include Eastern European countries like Poland, Romania, Hungary and Czech Republic, while offshore locations are South Africa and Russia.
In Hungary and, Poland, the average entry level salary is around 15,000 while it is varies between $35000 to $41000 for those with 5 to 8 years experience.
Ireland which offers companies in the UK a strong value proposition as a near-shore location pays high both for freshers and experienced talent, with the en-try level salary being $31500 and $84397 for managers.
Entry level salaries in Russia is $11664 while managers with 5 to 8 years of experience make around $29353.
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