Riya: A turning point for India, maybe
An interesting post by Munjal Shah of Riya - India grows up.
. . . an employee of ours who took the first 5 years of his career to get from 1% to 10% of his equivalent US counterpart. He then jumped from 10% to 20% of his US counterpart in the next 1 year. During his time with us (less than 2 years) he jumped to 55% of the US wage
. . . this huge run up in the wages has destroyed the ROI I referred to earlier. So today we decided to consolidate all of our engineering and research efforts back to our HQ in California.
Infrastructure problems, employee turnover, rising wages, stronger rupee . . . What happens when larger MNCs start thinking like Riya?
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April 27th, 2007 at 11:43 am
From the same blog….
“We tend to only hire folks from IIT or other top schools. We tend to only hire the smartest folks from these schools.”
thats explains why he is facing pressure due to wage increases.
Kaushik - the offshore billing rates of Indian IT services vendors are 23$ per hour. There is a HUGE wage differential still. It wont be eroded soon. (Although I agree its becoming a bit heady)