Mumbai: With salary costs in India for IT professionals rising fast, overseas companies are looking to Indian techies and firms for the quality and quantity of staff available to execute projects, rather than the price advantage.
“Salary costs in the US rose by 1%, Europe 2%, South Africa 4.5% and in India almost 15% in the last one year. Indian talent has become much more expensive in the last five years. But India is producing more software engineers and consultants than anywhere else in the world and that too of a high quality. So the attractiveness of India remains,” said Jeremy Ord, chairman of the $2 billion (Rs8,800 crore) London Stock Exchange-listed Dimension Data Holdings.
“There’s growth everywhere and you can grow as fast as you can get talent in this market,” he said.
Mark Jurgens, CEO of South Africa-headquartered Paracon Holdings, agrees. “There’s a global shortage of IT talent and we have, in fact, been using our 35% shareholding in Nihilent to access talent to carry out onsite work for our South African clients,” he said. Pune-based Nihilent Technologies is a business consulting firm.
Apart from talent, what’s attractive about the Indian market is the demand for networking.
Dimension’s Ord said the Indian market for networking is growing at almost double the US average, adding that he was seeing very good growth out of this business.
Incidentally, Dimension holds a controlling stake in the Singapore stock exchange-listed Datacraft Asia, which is also among the leaders in networking business in India.