Population changes.....

lisyloo

Over time, they will increase their wage expectations.

I agree that things will eqalise over time, but in some cases it takes decades as you've said.
Indian resources for us are something like 6th of the cost of UK staff. At the moment Indian staff get payrises and UK staff don't so they will catch up, but it will take a LONG time.

Why it's simplistic to say we need to compete in a global market place?

kabayiri

lisyloo wrote: »

I agree that things will eqalise over time, but in some cases it takes decades as you've said.
Indian resources for us are something like 6th of the cost of UK staff. At the moment Indian staff get payrises and UK staff don't so they will catch up, but it will take a LONG time.
...

I don't consider £405 per day a long way behind UK costs (in this case).

It wasn't decades, only one.

lisyloo

That sounds highly unusual to me.
But if you hand over all the family silver then yes they will take advantage (why wouldn't they?).
It doesn't sound representative at all regarding offshoring.
I'm not doubting your experience at all, I just don't think it's normal.

martinsurrey

kabayiri wrote: »

I don't consider £405 per day a long way behind UK costs (in this case).

It wasn't decades, only one.

http://www.payscale.com/research/IN/Job=Project_Manager%2c_Information_Technology_(IT)/Salary

that's about £12k per year.

several other sources put mid range IT professionals in India between £10-£20k

so either, you're hiring the cream of the crop, or your outsource company is robbing you blind.