I think the author looks to be a narrow minded. His views were illogical and targetted only on one perspective. Therez too many sides to consider before writing a article. And the author consideration of just a wage perspective is illogical. Also his example of ADP is not appropriate.
The Indians grab it very fast. While the politicians are sleeping with closed eyes the liberalisations is turned in loot. we realise the consequences very late. Like industry heavily polluted water streams an land in self greed and profiteering in 70s and 80s until Union carbide happened and screws were tightened around their necks. Same thing is happening with runaway wages being paid to nerds and geeks of very inferior quality fir for dog work. Even then they cant manage customer support services and ITES and IT based service compnaies. Indian customer support is not even third rate ,it is fourth class. The wages of 12 lacs are sheer loot and luxury and will erode Indian competitiveness-the only one dimension we have -cheap labor. Secondly in a country where in latest economic survey the per capita GDP is just rs 30000 per annum paying salaries like this to IT guys and freshers in IIMs and IITs is sheer plunder and illogical acts. It is also causing heartburn in babus. The whole scenario is disgusting and madness has taken hold. It is time Indian companies and MNCs in India start behaving and bring down wages and costs and make products cheap. This is only salvation route of poor Indians. Or be prepared not only to loose export markets but face civil war. More and more villagers and ethnic groups will create problems to assert their neglect and suffering. Indian IT companies including Infosys are mainly coolies.
The Indians grab it very fast. While the politicians are sleeping with closed eyes the liberalisations is turned in loot. we realise the consequences very late. Like industry heavily polluted water streams an land in self greed and profiteering in 70s and 80s until Union carbide happened and screws were tightened around their necks. Same thing is happening with runaway wages being paid to nerds and geeks of very inferior quality fir for dog work. Even then they cant manage customer support services and ITES and IT based service compnaies. Indian customer support is not even third rate ,it is fourth class. The wages of 12 lacs are sheer loot and luxury and will erode Indian competitiveness-the only one dimension we have -cheap labor. Secondly in a country where in latest economic survey the per capita GDP is just rs 30000 per annum paying salaries like this to IT guys and freshers in IIMs and IITs is sheer plunder and illogical acts. It is also causing heartburn in babus. The whole scenario is disgusting and madness has taken hold. It is time Indian companies and MNCs in India start behaving and bring down wages and costs and make products cheap. This is only salvation route of poor Indians. Or be prepared not only to loose export markets but face civil war. More and more villagers and ethnic groups will create problems to assert their neglect and suffering. Indian IT companies including Infosys are mainly coolies.
One thing is sorrowfully not considered in the article and it is the adaptation of Indian people when situation demands it.The person who has written this article has migrated herself. Yes!!Indian Service industry people take pride of doing bullshit jobs.Topmost intelligent people are hired in TCS/Infosys for doing nothing. Narayanamurthy,the big visionary, could not show his vision in turning Infosys into a global product giant. Taking help from Govt. tax benefits, Infosys has invested in real estate making sprawling campuses. That day is not far away when Infosys would not have many US projects and start a business of real estate. But how can you underestimate Indians? We have a history of making products. When US offers will not come, we will develop products totally forgetting this service mentality.Many of the freelancers are already doing that.Yes.We have a pathetic education system. But when internet is there, research would be easier.I personally have studied in Europe and US. and worked in EU, US Korea/China and Japan in all fortune 500 companies, mostly in semiconductor domain.I can assure you, we are now developing products as per with the Silicon Valley companies.Yes.We dont have University support to develop instantly google or hotmail.IITs are also not enough. They are making good students,but rarely make good prototypes.But our freelancers are doing extremely well.We lag internet penetrations and awareness.But believe me, we are thinking life beyond IT services
Who said We Software engineer are getting costlier day by day. We are still cheap...at most a person with 8-10 years of exp is receiving some 10-12 lacs/annum..This is the case with most of the top 4 indian IT companies. Now the problem is they are charging 10-12 lakhs, but how much the companies are charging the clients, this companies are charging too much to the client.. Let me give an example A person working in the offshore (india) gets paid 30-40 dollar/hour per day 35 * 8 (hours) = 280 dollar/day. per month 280 * 22 days = 6160 per year 73920 dollar/annum i n Indian ruppes: 73920*39 = 2882880 ( 28 lakhs 82 thousand). This calculation is for the person with 2-3 years of experience, not for 8-10 years of experience. Now, how much they are paying to the employee: some 3-5 lakhs/annum). Iam working as a project leader, the amout they bill to the client on behalf of me for 1 year (its my 10-12 year of salary in india). Now guys tell me who is getting costlier day by day employees or companies...(which tries to generate as much revenue as possible) by hiring cyber coolies who just execute not think. The main problem is in India there is no job for the people who can think, there is only job for the people who can listen and execute. Regards shotboat
RE:Who said We Software engineer are getting costlier day by day
by Amit Kumar on Mar 03, 2008 10:53 PM
Excellent calculation, Appreciated. Rediff should post this back to Author of article
RE:Who said We Software engineer are getting costlier day by day
by renu raju on Mar 03, 2008 11:08 PM
The calculation is not true. The billing rates have come down significantly these days. Very fe projects re charged at $30-40 range. The Average billing rate of a senior programmer(3-4 yrs exp) is 21-23 now in all the major services companies. Along with that, we need to think on infrastructure costs, non billability, travel expenses and multiple other orgnisational hidden costs. So, its not true that, organisations have a 60-80% margin. They atmost have 20-30% margin. I was a Projet manager and so I am aware of the costs and margins.
RE:Who said We Software engineer are getting costlier day by day
by Kaushik Das on Mar 03, 2008 10:47 PM
Interesting point - it's all about greed. Just like the subprime crisis where the govt of USA is bailing out the greedy ones, in India, the companies are continuing to be greedy. They don't want to reduce their charges - they will, in fact, lay you off and make another poor indian do your job as well as his own, but they will not reduce their own call. Also, the higher mgmt will not take any cuts in salary or lifestyle. You only will be asked to take the cut.
RE:Who said We Software engineer are getting costlier day by day
by Prof R K Gupta-India on Mar 03, 2008 11:41 PM
why not pay you 3 lacs per annum and pass on benefits to cahrity funds and NGOs in india.I think Governemt should havilty tax software export to divert uge earnings for nationla development.There is no point in paying hyge salries to nerds as wellas sell cheaper to importers till it is sun shine.The profits should be diverted for nation building and creating huge top quality IT and Technology fund for research institutions (not IITs and IIITs please)-the real ones.
RE:Who said We Software engineer are getting costlier day by day
by Amit Kumar on Mar 03, 2008 10:47 PM
Excellent calculation, Appreciated. Rediff should post this back to Author of article
We need to blame only Infosys, Wipro, Satyam, TCS sort of Marwari mentality companies. These guys hardly indulge in any innovation other than "serving" western masters by offering it cheaper! While our younger generation is getting greedy (looking for 25 Lakhs as starting pay package), IT/ITES is in the path of accelerated self-destruction mode. Welcome to India....Soon will be HELL of the World!
