Outsourcing: Cina the new India?

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Can you really bridge the gap between reality and training? Between traditional karate and real world encounters? Absolutely, we will address in this forum why this transition is necessary and critical for survival, and provide suggestions on how to do this correctly. So come in and feel welcomed, but leave your egos at the door!

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Postby Guest » Fri Sep 23, 2005 1:20 pm

If you lose your job to a foriegner, the government has a program to pay for your retraining. Worth looking into. You can collect unemployment for two years and taxpayers will pay your tuition and materials for you to get your degree.

Postby MikeK » Tue Nov 15, 2005 7:15 pm


This should be squeezing those narrow savings seen in outsourcing.

China tops India on average wage
Skilled workers earn more in China than in India, a new survey of pay in two of the world's fastest growing economies has revealed.

Project managers are paid twice as much in China than in India, according to human resources consultants Mercer.

Software engineers, sales staff, financial analysts and factory workers all earn more in China than India.

But average pay is rising faster in India and could surge further if demand for skilled workers outstrips supply.

Relocation factor

Mercer said wage differentials were one factor for multinational companies to consider when deciding where to base their operations.

Project manager: £12,173
Software engineer: £6,998
Accountant: £4,677
Sales rep: £2,649
Production worker: £1,214
Source: Mercer Human Resource Consulting

A string of US and European companies have relocated services to India because of its skilled workforce and low-wage costs.

At the same time, many firms - particularly in the financial services industry - are looking to establish a presence in China.

According to Mercer, the average annual salary of a Chinese project manager is £12,173, compared to about £5,220 in India.

Project manager: £5,220
Software engineer: £5,344
Accountant: £2,956
Sales rep: £2,464
Production worker: £964
Source: Mercer Human Resource Consulting

Accountants earn £4,677 in China compared to £2,956 in India while Chinese sales reps are paid £2,649 compared to £2,464 in India.

Even at the lowest end of the pay scale, skilled factory workers in China earn nearly £300 more a year than their Indian counterparts.

Competitive advantage

"While it is far cheaper to employ staff in both China and India than Europe or the US, India appears to have the advantage of slightly lower wage costs," said Mark Sullivan, worldwide partner at Mercer.

However, wage inflation is rising faster in India as demand for skilled workers for executive roles continues to outstrip the amount of suitable candidates.

Salaries rose by an average of 11.5% a year in India in the past five years compared to 7.5% in China.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/b ... 436692.stm

Published: 2005/11/14 18:46:29 GMT

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Postby MikeK » Mon Jan 30, 2006 2:30 pm

The free market at work.

SAP CEO: India is getting expensive
Escalating personnel costs are leading SAP to look elsewhere for skilled programmers

By John Blau, IDG News Service

January 30, 2006

Escalating personnel costs in India -- one of the world's largest markets for off-shore software development services -- have prompted business software vendor SAP to begin looking elsewhere for lower-cost, skilled programmers.

"India is slowly getting expensive," SAP Chief Executive Officer Henning Kagermann said in an interview published Monday in the German edition of the Financial Times. "We have decided to hire a certain number there, and then start looking at other locations."

SAP spokesman Frank Hartman confirmed the statements.

Kagermann pointed to India's relatively high staff turnover, which is fueling personnel costs, Hartmann said. "Personnel costs are key factor in the software industry."

Staff turnover in India has increased as SAP competes against other IT powerhouses such as IBM and Microsoft as well as local Indian IT companies such as Infosys Technologies and Wipro for qualified staff.

SAP is likely to expand in China and Eastern Europe, according to Kagermann. The reason why the German vendor currently has only limited software development in China is largely due to the country's lack of protection for intellectual property rights, he said. "But that isn't going to prevent us from doing more in China," he said.

Today, around 1,000 people work for SAP in China, mostly in sales and marketing, according to Kagermann.

Eastern Europe is another area where the German CEO sees opportunities to offshore software development. Turnover is low, he said, and the costs aren't too high.

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