India Outsource Pricing?

[Unnsse Khan]

What is the base pay, in US Dollars, ($), for software development in India? How much would it cost to pay a team of four developers to create a J2ME / J2SE title?

What is the going rate?

[K Riaz]

According to the BBC and several posts here, the average programmer salary is around $5k. Only Romanians produce cheaper programmers ($2400). If the work is boring, tedious and undemanding, its a good candidate to be outsourced.
[ May 29, 2005: Message edited by: Kashif Riaz ]

[Barry Gaunt]

Originally posted by Kashif Riaz:
According to the BBC and several posts here, the average programmer salary is around $5k. Only Romanians produce cheaper programmers ($2400). If the work is boring, tedious and undemanding, its a good candidate to be outsourced.

[ May 29, 2005: Message edited by: Kashif Riaz ]

Are your figures for a month?

[K Riaz]

Annual.

A recent post here from someone with an offer quoted the Indian figure for a Java Developer with three years of experience.
[ May 29, 2005: Message edited by: Kashif Riaz ]

[Karthik Guru]

Originally posted by Kashif Riaz:
Annual.

For what kind of experience?..which place? - Bangalore?

[Mike Gershman]

As a point of reference, the US minimum wage is $5.15/hour. Assuming 2000 hours, that is $10,300/year.

In the UK, it is 4.85/hour sterling, or $17,867/year.

Some posts here have suggested that the cost of living in India is about 25% of that in the US, but I suspect that depends mainly on lifestyle. There are Mexicans living near me in NY who support themselves here and their extended family back home while earning the minimum wage.

Is a gallon of gasoline, a pair of Air Jordan tennis shoes, or a 2000 square foot suburban house with central air conditioning any less expensive in India?


There are, of course, programmers in all three countries who make much more than the average. This is only fair because a good programmer is about 15 times as productive as an average programmer. There are even systems experts who can save their colleagues a week's work in 30 minutes by quickly identifying a bug or performance bottleneck. Still, the average applicant will be offered the average wage by definition.

You can only find your own market value by applying for jobs and seeing what you are offered.

[Mark Herschberg]

I have heard ballpark figures of about $2000k/mo as the cost to a US firm for a developer in India (through a major outsourcing shop). I think the developer himself makes about $1000/mo.

--Mark

[Arjunkumar Shastry]

Fresher's salary in Mid to big outsourcing company is somewhere between $4200 per year.For 3-5 years experience,it goes upto $9000 per year.After 4-5 years of experience ,(s)he is made team-leader then Project leader and then project manager depending on interest and ability.Salary ofcourse increases and may touch upto $23000 to $25000 per year.(One Database Admin with 10 years experience in US was getting $26000 per year here.)
The above figures are not exact.But that what most of the people get IMO.
The above figures are for Indian companies.Foreign offshore companies generally give little more than this.Possibly for fresher $5000 per year.
While hiring freshers,Indian companies generally don't differentiate between candidates unless (s)he has done some exceptional work.

[Arjunkumar Shastry]

Originally posted by Mike Gershman:

Is a gallon of gasoline, a pair of Air Jordan tennis shoes, or a 2000 square foot suburban house with central air conditioning any less expensive in India?

It will cost same as anywhere in the world.So people here(or in south Asian countries) have to adjust themselves with less salaries.Hence you see even today people queing up for visas for US/UK/Canada consulates.

[peter wooster]

Originally posted by Arjunkumar Shastry:
It will cost same as anywhere in the world.So people here(or in south Asian countries) have to adjust themselves with less salaries.Hence you see even today people queing up for visas for US/UK/Canada consulates.

I looked up the cost of petrol in Bangalore. Rs. 58/litre, that's about $5.00 per US gallon. The highest price for gasoline in America was $2.89 near Yosemite park

[Karthik Guru]

Originally posted by peter wooster:


I looked up the cost of petrol in Bangalore. Rs. 58/litre,

Its 42-44 / litre actually.

[peter wooster]

Originally posted by Karthik Guru:
Its 42-44 / litre actually.

I was looking for max quoted price. The lowest price in the USA yesterday was $1.73 / gallon in Dexter MO, or about Rs. 20/litre. The average was $2.02/gallon.

[Ramesh Choudhary]

Originaly Posted by Kashif Riaz:
If the work is boring, tedious and undemanding, its a good candidate to be outsourced.



How True!!!
[ May 30, 2005: Message edited by: Ramesh Choudhary ]

[ali haider]

The rate for indian outsourcing is around 16-20US$ per hour for entry level developers in MNCs providing application services. My question is, is it the same rate for consultants in India.. like consulting firms like Accentuer, thoughtworks.. coz i wonder does the huge gap between working in US and working in India in terms of pay get less somewhere.........

[Arjunkumar Shastry]

I think it depends on skills and how hot those skills in market.SAP consultant earns much more than experienced Java/C++ programmer anywhere in the world.Same is true for Siebel or any CRM product specilization.$15 to $20 I think is a high figure for entry level programmer here.Rates are decided mutually between client and company.The last time I heard(may be wrong),Infosys/Wipro/TCS generally charge somewhere between $20 to $25/hour per experienced(3 to 5 years) programmer for offshore project.
As you must be aware,projects which involve huge coding are diminishing.
[ June 01, 2005: Message edited by: Arjunkumar Shastry ]

[Unnsse Khan]

If projects which consist of "huge coding" are diminishing in India, then that's a definite good news to us American software developers! Thanks for the great news!

[Arjunkumar Shastry]

Originally posted by Unnsse Khan:
If projects which consist of "huge coding" are diminishing in India,

I believe thats everywhere.Thats one of the reason why projects are offshored.

[Unnsse Khan]

I disagree... I live in California and there's a ton of new jobs (it seems, by looking at the job boards)... In my humble opinion, everything is back on the ascent!

[Arjunkumar Shastry]

Correct,so those jobs must be involving lot of customer interaction and more coding.

[Tim Holloway]

Originally posted by Arjunkumar Shastry:

Originally posted by Mike Gershman:

Is a gallon of gasoline, a pair of Air Jordan tennis shoes, or a 2000 square foot suburban house with central air conditioning any less expensive in India?

It will cost same as anywhere in the world.So people here(or in south Asian countries) have to adjust themselves with less salaries.Hence you see even today people queing up for visas for US/UK/Canada consulates.

Actually, no. Gasoline in the US is fairly cheap compared with a lot of places, the Air Jordan's MIGHT be a little cheaper overseas if you're close to the factory and can score seconds or something, but the house is going to be a lot cheaper, since a lot of the house cost is local construction labor costs. Though 2000 sq ft is larger than even US houses were likely to be until the last decade or 3.

What's more important to ME, however, is the cost of computer toys. And since they tend to come from Taiwan, the price is going to be about the same in India, the US, or Europe.

[peter wooster]

Originally posted by Tim Holloway:
... but the house is going to be a lot cheaper, since a lot of the house cost is local construction labor costs. Though 2000 sq ft is larger than even US houses were likely to be until the last decade or 3...

Actually the cost of land is the biggest single component in the cost of housing. That's why a house that costs $200,000 in Syracuse is $1.5 Million in NYC or Boston. The construction costs are very similar in those three cities.

Land prices are driven by the population density and the availability of good paying jobs. For this reason, you shouldn't be surprised to see houses in Bangalore costing about what they do in Syracuse and headed in the direction of NYC. I just did a search and there aren't many 2300 sq ft houses advertised, but I did find one for 90 Laks. Thats about $200,000, its a 2 bedroom bungalow so I suspect that size includes the basement since it sits on a 2500 sq ft lot and the ad mentions parking. In contrast $170,000 buys a 4 bedroom sidesplit on a .33 acre lot in suburban Syracuse.