User 159440

1 Comment

    • How Much Longer Will Indian Outsourcers Offer Cost Advantages? [view article]
      • Muzza
      Mar 03 05:54 AM
      You guys know nothing. I have managed Infosys, Tata and Wipro for clients and I manage a small Indian company for my own work.

      The truth is you will never get an Indian programmer with 10 years experience on your project. There are hardly any of them around. Nearly every Indian IT person we get on our projects has only 2 to 4 years IT experience. Team leaders have 3 to 5 years IT experience and project managers have 4 to 7 years IT experience. That’s not 4 to 7 years project management experience that’s 4 to 7 years experience in the IT industry in total.

      This lack of experience makes these people much less reliable, much less flexible and much less value than there local competitors with twice as much IT experience.

      Yes they do get paid 10,000 rupees + 10,000 rupees per year of experience. So on average our people are getting paid 40,000 to 50,000 rupees per month. This works out to be $12,000 US dollars salary per annum.

      Now the crazy thing is that the large Telco I work for pays more for Indian resources from Infosys, Tata or Wipro than it would pay for much more experienced local resources.

      For example we pay $500 US dollars a day for off shore resources and $950 a day for onshore resources. Based on 200 working days a year this is equivalent to $110,000 per annum for an offshore resource and $210,000 for an onshore resource.

      No wonder Infosys has a 45% profit margin. It's amazing that it's not much higher. These Indian companies must be incredible inefficient compared to there western competitors.
      I guess this means that these Indian companies can afford to absorb the price increases from rising labour costs and from rising Indian currency for many years simply be becoming a bit more efficient every year.

      Mar 03 05:59 AM
Contribute an Article Become a Seeking Alpha Contributor