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A study, which compared the prevalent hourly wages in the U.S. and India, was published in Berkeley News, a university publication. For instance, a telephone operator in the U.S. makes $12.57 an hour while his counterpart in India makes less than $1 an hour. Similarly other comparisons are: -
Health record technologist/medical transcription ($13.17), India wages: $1.50-$2.00;
Payroll clerk ($15.17) India wages: $1.50-$2.00;
Accountant ($23-$35) India wages: $6.00-$15.00;
Financial researcher/analyst ($33-$35) India wages: $6.00-$15.00;
Legal assistant/paralegal ($17.86) India wages: $6.00-$8.00
| US$ Cost per FTE (Full-Time Employee) |
United States |
India |
India as % of US costs |
| Personnel |
42,927 |
6,179 |
14% |
| G&A Expense |
8,571 |
1,000 |
12% |
| Telecom |
1,500 |
2,328 |
155% |
| Property Rentals |
2,600 |
847 |
33% |
| Depreciation |
3,000 |
1,500 |
50% |
| Total Expenses |
58,598 |
11,854 |
20% |
* Source: Industry Sources, Merill Lynch 2003 (From the Nasscom Strategic Review 2003)
Comparative Cost per Employee
Excellent Infrastructure and technology support
Credit for India's rapid growth in the IT software services and ITES/BPO domains must go in part to the availability of a robust infrastructure (telecom, power and Roads) in the country. Relevant telecom facilities are an important prerequisite for the success of the software industry and over the years, the Government has taken steps to ensure that telecom remains a priority area.
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* Contributed by -
Shuchi Singla,
Global Business Operations, Semester-11,
Shri Ram College Of Commerce,
University Of Delhi.
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