New Delhi: The impact of the rupee rise and fed rate cut on IT salaries is yet to be seen with appraisals around the corner, but as of now India is ranked fourth on the ten worst IT paymasters globally, a recent survey said.
India remains one of the most favourite outsourcing destinations due to this low cost factor, but the future might bring with itself a completely different scenario, a survey by global human resources firm Mercer Human Resource Consulting said.
“India continues to be amongst the leading destinations for IT development, given its cost advantage. However, salary inflation and talent shortage could emerge as major challenges in maintaining this position in future,” Mercer India business leader (Information Product Solutions) Gangapriya Chakraverti said.
However, there is an increasing evidence of India’s growing stature and presence in the high-end value chain, where cost advantages may not be the only drivers to future growth, Chakraverti added.
While Indian IT managers stood fourth on the ten lowest paying countries with an average salary of $25,000, Vietnam topped the list with a meagre average salary of $15,470, followed by Bulgaria and Philippines averaging at $22,240 and $22,280 respectively.
Other countries on the list were Indonesia at fifth with average wages of $31,720, followed by China (Shanghai) with earnings of $33,770, Malaysia ($35,260), Czech Republic ($35,880), China (Beijing) ($36,220) and Argentina ($43,180).
Also, large pay gaps exist between the junior and senior career streams in India, Indonesia, Chile, Brazil and Vietnam, the ‘Mercer IT Pay Around The World’ survey said.
The same structure does not prevail in the US and Western European nations, where pay increases proportionately with experience, the survey added.
“In the lower-paying countries emphasis is mostly laid on cash compensation, where more discrepancies are seen. In the West, companies have to be more creative to attract staff offering bonus schemes and other variable factors, so the cash components do not vary dramatically,” Mercer London principal David Conroy said.
Switzerland topped the list of the best IT salaries paying countries, with an average annual remuneration of $1,40,960. The same job if taken in Denmark, second on the list, would pay $1,23,080, the survey said.
Belgium stood third in the best paid list with salary in the IT sector averaging at $1,21,170. The UK and Ireland were ranked fourth and fifth on this list with average packages of $1,18,190 and $1,08,230 respectively.