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Home » Outsourcing to a Cheap India? Look Again.

Outsourcing to a Cheap India? Look Again.

January 30, 2008
Business Week

In a country with over a billion people, a worker shortage shouldn't be high on the list of concerns for corporate executives. But India, with the world's second-largest population, has a labor shortage in many industries. Even as Mumbai stock market investors suffer whiplash from the global subprime meltdown and worries about recession in the U.S., Indian companies are finding they need to boost salaries in order to attract or retain employees.
According to a recent report from London human resources firm ECA International, average wages at multinationals in India are likely to jump 14 percent this year, putting India at the top of a ranking of 47 countries worldwide for the second year in a row. "Salaries in India are catching up to developed nations at a faster rate (than in many other Asian countries)", says Lee Quane, Hong Kong-based Asia general manager for ECA. "Companies have had to provide higher salaries."
Source: Business Week, http://businessweek.com

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KEYWORDS Asia Pacific Global Supply Chain Management High-Tech/Electronics HR & Labor Management
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