Tuesday, May 01, 2007

 

India Outsourcing: 15% raises this year for employees...

Check out this story from InformationWeek on how Tata, Infosys, Wipro and other India based outsourcing firms will be providing 15% raises for their employees. I would love to hear from anyone in the United States that ever got such a big increase from their employer without having to threaten to quit.

I wonder what the long term considerations are for setting the expectations of employees so high? There will be lots of unhappiness in years to come when folks in India sooner or later start adopting US oriented raises of 2%. I also suspect that for shops that calculated a high ROI for outsourcing that a 15% increase in salaries will translate into a downward spiral in terms of your willingness to eliminate even more jobs in America...




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