Indian Salaries: Comparing Apple with Oranges!

by Arun Prabhudesai on October 18, 2007

Today news of India being one of the lowest IT paymasters is splashed across the media. Do you think that comparing US salaries with Indian salaries is fair or for that matter even comparing it to any country’s salaries is fair?

I think not!

According to the IT Pay around the World Survey 2007 rankings by Mercer, India stands at 4th from bottom just about Vietnam, Bulgaria and Phillipines in terms of salaries of IT managers world wide.
Here is the complete list of Top 10 and bottom 10 country rankings:

IT Managers: Lowest paymasters

IT Manager: 10 lowest-paying countries (various currencies)
LocalUSDEURGBP
Vietnam15,47015,47012,1808,140
2Bulgaria34,25o22,24017,51011,700
3Philippines1,106,70022,28017,54011,720
4
India
1,120,490
25,000
19,680
13,150
5Indonesia289,155,00031,72024,97016,690
6China (Shanghai)265,81033,77026,58017,770
7Malaysia129,93035,26028,04018,740
8Czech Republic791,43035,88028,25018,880
9China (Beijing)285,13036,22028,52019,060
10Argentina133,04043,18033,99022,720

IT Managers: Top paymasters

IT Manager: 10 top-paying countries (various currencies)
 

 

LocalUSDEURGBP
Switzerland176,920140,960110,99074,150
2Denmark722,310123,08096,89064,750
3Belgium95,380121,17095,38063,760
4UK62,180118,19093,09062,180
5Ireland85,200108,23085,20056,950
6US107,500107,50084,65056,550
7Germany84,020 106,730 84,020 56,160 
8Canada106,00093,86073,87049,370
9Hong Kong (China)702,72090,34071,12047,530
10Australia115,48088,85069,95046,740

The survey should have taken into consideration, the standard of living across various countries as that is the only way one can make a fair judgement.

Can a  family in USA live on $1000/- monthly?, however, in India, a family can live very comfortably in that kind of money.

Is it same earning 1000 dollars monthly in HongKong to earning 1000 dollars here in India. No absolutely not!

The most surprsing part is the way media projects it. Read this “IT does not pay: India lowest paymaster”. What should one make by reading this headline?

Aren’t you comparing Apple to Oranges?
PG

Author: Arun Prabhudesai

Arun Prabhudesai is founder / chief editor at trak.in. He jumped the Entrepreneurship bandwagon in early 2008 after a long 13 year stint in I.T Industry. You can follow him on twitter @trakin or get in touch with him at admin-at-trak-dot-in or 91.9822575676.

Related posts:

  1. Take home salaries dip by 30% over last 10 years…What? How? Why?
  2. The falling Dollar and Dilemma of Indians in US!
  3. Top Trakin posts for October
  4. Here’s a quick look at earnings of Indian people.
  5. Indian IT professional’s salary increase one of the highest in world !
  6. Top 5 reasons why Indian IT professionals return back to India
  7. The Indian software professionals are in big demand for 2 M’s….Money and Marriage!
  8. Top 7 reasons why Apple Iphone is a big flop in India
  9. Is threat to Indian outsourcing firms real ?
  10. 13 reasons for success of Indian software industry

Enter your email ID to get similar articles in your inbox free

{ 1 trackback }

free omaha poker
May 1, 2008 at 10:28 am

{ 5 comments… read them below or add one }

1 Philip October 18, 2007 at 8:56 pm

The most sensationalist headlines rule. That's why the media is made up of morons. They have a simple brief. Write articles with the most bombastic words and headlines. Afterall the aim is to grab as much eyeballs as possible.
I doubt if anyone proof reads their articles before they are posted/printed.  

Reply

2 Sumedh October 19, 2007 at 3:29 am

hahaha :)

Reply

3 Srikant October 22, 2007 at 3:12 am

The correct metric to use is the purchasing power parity (PPP) as that is a good indicator of the buying power of a currency.

Reply

4 trakin October 22, 2007 at 11:29 am

@Philip you are so right, I have publsihed many posts earlier showing proof of how badly mainstream media reports. Their articles are badly researched and purely based on Hearsay…
Take examples of google phone launch news or the Internet numbers…and thats why alternate media like us bloggers play an extremely important role in creating the right picture….

@Srikant..Nice to see you drop by an comment. yes, you are absolutely right..I have put up small post on India's purchasing power parity earlier:
Indian Purchasing Power Parity to overtake Japan by 2025

Reply

5 Indian Blogger October 22, 2007 at 7:40 pm

This is from the Economist. I read it in the morning today.

RELOCATING staff to Switzerland is unlikely to keep down wages in a firm's information-technology department. IT managers there raked in an average of $140,960 last year, making them the highest paid in the 35 countries surveyed by Mercer, a consultancy. European countries take six places in the top ten. It is clear why so many IT jobs are outsourced to developing countries. Managers in India earn just $25,000 a year. Only companies in Vietnam, Bulgaria and the Philippines pay less. AFP

Reply

Leave a Comment

You can use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

 

Previous post:

Next post: