But now the fact is rising pay scale may dull India’s IT Outsourcing Industry. It is found that country’s IT services is getting more and more expensive day by day. Pay scales of the employees in the country are also rising rapidly.
Demands and expectations of the employees are also increasing with their increasing demand in the market. Inspite of the fact that with an anticipated rise of around 28% in the financial year 2005-06, scorching rise carry on to be the trend this year also. Till date country has the monopoly in the IT industry as far as IT Outsourcing is concerned. Along with Offshore Software Development country is also demanded for BPO services. Lots of overseas big giants have their presence in India for such IT services.
But now the time has come to think something about the rising salary of the employees in India. Foreign countries used to come to India as they found the lower labor rate in the country. But the recent survey taken place by NASSCOM suggests that the average pay scale of the employees has increased between 16 and 18%. This is really very serious matter. Because rise in the pay scale would make MNCs to search for some other overseas destinations. So the country should take some steps towards this trend. Outsourcing firms are now falling prey to mounting pay scale costs for specialized skills and talents and the requirement to constantly supporting reward exercises to the market continues.
IT Outsourcing industry
If the pay scale of the employees in IT Outsourcing industry would continue to grow in the same manner than within a short period of time country may loose many of its Offshore Outsourcing contracts. This effect may play major role in BPO industry as the rising pay scale ratio is very high in that sector. India is also that much famous for BPO services also. Most organizations in IT & ITeS have now selected to tolerate the tax load themselves rather than pass it over completely to the staff. This step of the companies is to manage the rise in the pay scale of the employees. Over the years IT sector has observe almost double digit growth in the pay scale. This area really requires attentions of the authority.