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Indian IT Industry Ranked 7th for Being Stingy in Paying Salaries: Survey

Survey ranks country seventh on list of lowest pay for IT managers; HR professionals say this is because cost of living is much lower in India

Published: 22nd September 2015 03:52 AM  |   Last Updated: 22nd September 2015 04:09 AM   |  A+A-

CHENNAI: India might be heading headlong into policies promoting manufacturing, but IT still remains the country’s marquee industry. Not to mention, its top paymaster. But Indian IT companies are also among the stingiest when compared to their global peers, says a survey conducted by Gurgaon-based recruitment and HR firm myhiringclub.com. India figures at Number 7 in the survey’s list of countries which pay the lowest salary to IT managers with a minimum of four years of experience.

Featuring a sample base consisting of over 9,000 companies across 40 countries, Indian IT professionals who come under the bracket get an annual average wage of $41,213. In comparison, Switzerland, which doles out the highest, pays a professional of the same grade $171,465 per annum — more than four-fold of what his/her India-based contemporaries can expect. In fact, the top ten salary paying countries all pay professionals in the bracket in excess of $100,000, or Rs 65 lakh plus.

Capture.JPGIndia is only pipped in the lowest paying list by eastern European Bulgaria ($25,680), Vietnam ($30,938), Thailand ($34,423), Malaysia ($34,540), Indonesia ($34,780) and Philippines ($37,500). Among the top payers are Switzerland ($171,465), Belgium ($152,980), Denmark ($138,920), United States ($132,877) and the United Kingdom ($129,322).

If you are surprised that Indian IT figures this badly in comparison to the world, you could be more so if you consider the fact that IT/ITES sector in India is also the country’s highest paying employer. The Monster Salary Index, which comes out with a list of median salaries every year, found that the IT industry pays its supervisory professionals Rs 341.8 an hour — the highest among any single Indian sector.

Spokespersons from the National Association of Software and Services Companies (NASSCOM), the apex body for IT/ITES industry, declined to comment. However, according to HR professionals, the answer lies in a simple factor — purchasing power parity and the cost of living in the countries being surveyed. Quite simply, India is just not as expensive to live in as some of the other countries on the list. In fact, the top five remunerators are 200 per cent more expensive to live in than India. Going by a comparison of the Consumer Price Index and Rent, Switzerland is 492 per cent more expensive than India. The US and the UK are 296.73 per cent and 308.21 per cent more expensive respectively.

“This is why basing surveys on purely dollar terms is a poor way to compare countries by. The cost of living is one of the largest factors when it comes to determining salary — provided the people being surveyed are among the same level skill-wise,” pointed out Rituparna Chakraborty, president of Indian Staffing Federation.



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