Comment Tired of the exageration (Score 2, Informative) 902
As a US expatriate (of US origin) living in Bangalore and setting up a software company here, it gets tiresome to here the continuous exageration about the price differential between the US and Indian workers. In the article, things like taco bell wages and 1/6th the rate were mentioned. This isn't the real story.
Bangalore rates are between 3-14 lakhs/year which comes to about $7000 to $31000. While $7000 may be a small fraction of the US rate, this is for someone with a junior college level of skill who has just graduated. Within 8 years they are over $20,000. probably about 1/4 of a US equivalent.
On top of that, most US firms aren't paying that rate. From a fully burdened perspective taking in to account communications, travel and other overhead, most companies are pretty lucky to get a 3 to 1 ratio and 2 to 1 is probably closer to correct.
What's more, they are already scraping the bottom of the barrel for available talent. I take interviews every day with people who are WORKING engineers with a junior college level of education who can't answer very simple programming problems. The best people will ask you straight out for 30% more than their last job which they've had for only 1 year.
The assumption that India can continue to take jobs at the rate it has is absurd, and the upward pressure on rates will make it less attractive as a destination in the future.
There are many GREAT engineers here, and they work for a fraction of the US rates, but extrapolation is the tool of the devil. Let's stop all this end-of-the-world talk.
Bangalore rates are between 3-14 lakhs/year which comes to about $7000 to $31000. While $7000 may be a small fraction of the US rate, this is for someone with a junior college level of skill who has just graduated. Within 8 years they are over $20,000. probably about 1/4 of a US equivalent.
On top of that, most US firms aren't paying that rate. From a fully burdened perspective taking in to account communications, travel and other overhead, most companies are pretty lucky to get a 3 to 1 ratio and 2 to 1 is probably closer to correct.
What's more, they are already scraping the bottom of the barrel for available talent. I take interviews every day with people who are WORKING engineers with a junior college level of education who can't answer very simple programming problems. The best people will ask you straight out for 30% more than their last job which they've had for only 1 year.
The assumption that India can continue to take jobs at the rate it has is absurd, and the upward pressure on rates will make it less attractive as a destination in the future.
There are many GREAT engineers here, and they work for a fraction of the US rates, but extrapolation is the tool of the devil. Let's stop all this end-of-the-world talk.
