Indian outsourcing is nearing death
Analysts predict that the IT industry in India faces a severe crisis associated with wage increases. More recently, experts note, the salary ratio of American and Indian programmers was 6: 1, and now it has decreased to 3: 1. Last year alone, the salaries of Hindus increased by 15.1%, a year earlier - by 14.4%. For the current year, wage growth is forecast at 15.2%. This will be the fifth consecutive year of growth of more than 10%.
Low wages - the main and almost the only advantage of Indian developers. If the ratio of salaries drops to 1.5: 1 (at current growth rates this will happen by 2015), Western customers will have to look for other, cheaper, performers, including those from Eastern Europe. True, salaries in Russia and Belarus are growing no less rapidly than in India.
The IT industry generates 7% of Indian GDP and a third of export earnings. 4 million people are employed in this industry as of 2008.
Low wages - the main and almost the only advantage of Indian developers. If the ratio of salaries drops to 1.5: 1 (at current growth rates this will happen by 2015), Western customers will have to look for other, cheaper, performers, including those from Eastern Europe. True, salaries in Russia and Belarus are growing no less rapidly than in India.
The IT industry generates 7% of Indian GDP and a third of export earnings. 4 million people are employed in this industry as of 2008.
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Source: https://habr.com/ru/post/21128/
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