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July 12, 2005

Offshoring: Salary Differences in Tech Support and Related Occupations

The high-tech salary gulf:

Hard salary numbers for offshoring | News.blog | CNET News.com: Entry-level workers at Vietnamese tech outsourcing operations earn an average of $3,276 a year, compared to $5,443 for such workers in India, $5,616 in Romania and $25,338 in Canada. Those stats are among the juicy nuggets that can be snagged from a report released Wednesday by consulting firm neoIT. But the salary information must be put in context, neoIT cautions.

"Salary differences are huge when comparing IT jobs onshore versus offshore, but taken in isolation they don't provide an accurate picture of the total cost of offshoring since it requires a more complex management and governance structure in order to ensure that goals are met," Atul Vashistha, CEO of neoIT, said in a statement. According to the report, firms have realized net cost savings in the range of 10 to 35 percent by outsourcing IT operations to lower-cost offshore and "nearshore" locations. Examples of "nearshore" nations include Hungary, Israel and Ireland, according to neoIT.

Of 18 outsourcing countries, India had the highest year-over-year growth in average salary for IT outsourcing professionals in 2004, at roughly 13 percent, the report found.

Posted by Ed Frauenheim

Posted by DeLong at July 12, 2005 02:48 PM