India, lowest IT paymaster
Date: Thursday , November 01, 2007
In the survey ‘IT pay around the world survey 2007’ conducted by Mercer’s, India has been named as one of the lowest paymasters for information technology (IT) managers.
India was ranked fourth from the bottom. The survey noted that Indian IT managers get paid an average salary of $25,000 a year. It further revealed that IT managers in Vietnam, Bulgaria, and the Philippines received the lowest pay at $15,470, $22,240, and $22,280 a year respectively.
The survey compared the total annual cash compensation and total remuneration information for IT staff in 6,545 companies across 35 different countries. The survey revealed that the low wage structure is the key attraction to outsource work to Indian IT companies. This will act as a catalyst for robust growth in the $40 billion Indian IT industry.
“India continues to be among the leading destinations for IT development, given its cost advantage. Salary inflation and talent shortage could emerge as key challenges in maintaining its position as a favorite destination. There is also an increasing evidence of India’s growing stature and presence at the high end of the software value chain, where cost advantages may not be the only driver for future growth,” says Gangapriya Chakraverti, business leader, Information Product Solutions, Mercer (India).
The study also identified the “yawning gap between junior and senior career streams” in developing countries such as India. Indonesia, Brazil, Chile, and Vietnam along with India have been identified to have the highest gap in the pay progression ratios between the lowest and the highest career streams.
“This reflects a lack of hierarchy in Western IT functions. In these countries, companies need to be more creative to attract staff. There is more focus on variable factors to attract staff, such as bonus schemes, while in low-paying countries, the emphasis remains on cash compensation,” says David Conroy, a Principal in Mercer’s London office.