So far my research on the Indian software (sw) industry reveals the
following:
1. low wages (salaries) are important for MNC location.
2. quality of workforce (skill-wise) is equally important.
3. command over the English language is very important.
4. Indian sw industry salaries are increasing at 20% per annum compared to
US rates of about 10%. Absolute salary differentials are still massive but
within the Indian context very high.
5. A US sw engineer earning $60-70,000 a year will earn about $25-30,000 in
India. But when you factor in cost of living, taxes, club membership, and
social connections, and the like most Indian managers in this bracket would
prefer to live in India.
6. Labor turnover in the Indian sw industry is very high (relatively):
roughly 17%. Most leave for the US after a couple of years work. There is a
massive shortage of sw professionals in the advanced capitalist economies
and shortages are beginning to show up in India.
7. The Indian government at various levels is planning for new IT
institutes patterned after the successful Indian Institutes of Technology.
Private firms are providing basic training.
8. Previous "brain drain" from India seems to be now working in India's
favor.
9. The Indian industry still piggy backs on services for mainly US clients
with little intellectual property rights retained in India. This will
remain for a while until the domestic Industry generates home demand.
10. India has had the most insulated economy for a long time with a trade
ratio coming close to North Korea's:) but the sw industry is an anomaly of
sorts with about 60% exports!
More to follow....
Cheers, Anthony
