Programmers in India work for a third of the price of American programmers.

@AskAlly (3627)
Canada
January 25, 2007 2:52am CST
A large number of foreign airlines, credit card companies, banks and corporations have moved their "back-office" work to India to cut costs. The United States accounts for more than 60 per cent of India's software exports which are forecast to grow 30 per cent to 47.5 billion rupees ($A1.63 billion) in the financial year ending March 2003. About 1,000 technology firms, including Intel, IBM, Dell, Texas Instruments, Motorola and General Electric, have set up base in the city - India's Silicon Valley - which has attracted about $US2 billion ($A3.26 billion) of investment. India has the world's second largest pool of English-speaking computer literates after the United States. Three years ago, when dotcom companies were booming, Indian code writers were much in demand in the US as they were paid one-third of the salary of a skilled American software professional. Is this Fact or Fiction?
3 people like this
3 responses
@judyt00 (3504)
• Canada
25 Jan 07
I'm amazed they even pay that much! American corporations have been long known for farming out jobs to countries that even use child labour and near slave wages.In Mexico, the US government threatened trade sanctions if American corporations weren't allowed to relocate some of the dirtiest, most polluting jobs there, And now they wonder why mexicans are moving north in droves. However, about India, I'm pretty sure the cost of living in India is low enough that the pay Indians receive is worth more than the Americans any way. You could live quite comfortably on $15,000 per year in India but its starvation wages in America.
2 people like this
@AskAlly (3627)
• Canada
25 Jan 07
Is it fair compenstation to be doing the same job, but for 1/3 of the pay? The big beef in North America is that women are not being fairly compensated. Equal pay for equal work?
@BunGirl (2639)
• United States
25 Jan 07
Equal pay for equal work, yes, but cost of living has to be factored in. Even within the US you'll see wide discrepancies between wages in different regions. A worker in New York city can expect to be paid much higher than someone doing the same job in a small town in the mid west. This is because it costs so much more to live in NYC.
1 person likes this
@missyd79 (3438)
• United States
25 Jan 07
i am going to go with fact because I know the company i work has 2 India base offices, and i was one of those fortunate people that go to keep my job while they down sized because about 40% of our work goes to India.
1 person likes this
@AskAlly (3627)
• Canada
25 Jan 07
Ouch thats got to hurt! No wonder the economy there is doing so well. I'm not so sure I agree with that when we have our own unemployment issues
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@BunGirl (2639)
• United States
25 Jan 07
I don't know about the exact numbers, but the gist of the story is correct. If companies couldn't get away with paying so much less to foreign workers, they would simply keep all of their operations here. Of course, part of the cost of American workers is not so much in the wages, but the benefits -- health care, paid vacation days, and many other "perks" can be very costly for employers here. Also, I would assume that the cost of living is not as high in India as it is here, though I could be wrong.
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@AskAlly (3627)
• Canada
25 Jan 07
you make a good point...both times!
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