neoIT issues offshore & nearshore IT salary report Thursday, June 2 2005 18:28 Hrs (IST) - World Time -
Bangalore:
neoIT, the leading offshore advisory and management firm, has issued a report detailing the latest global IT salaries for key offshore and nearshore markets. The latest in neoIT's monthly white paper series is titled "Offshore & Nearshore ITO Salary Report 2004".
The report analyses the current salaries for various IT positions and discusses the growth trends compared to the previous year. To date, the dramatic differences in wage rates offshore has provided the most compelling reason for global sourcing of services, since employee salaries account for the largest proportion of the total cost of global outsourcing, neoIT statement said.
Going beyond IT salaries, neoIT has examined the other types of costs that, in addition to salaries, play a crucial role in assessing the overall cost for ITO (Information Technology Outsourcing). These include:
Wage rate
Communication systems
Physical infrastructure and support
Effort required for transition and governance
Resource redeployment, HR change management, training and productivity
Disaster recovery & business continuity capabilities
Travel Costs
While wages make up a higher percentage of the costs in onshore and nearshore locations, the other factors play a larger role when IT jobs are located offshore. Doing a thorough analysis upfront to assess the costs and resources required to offshore will provide a more accurate view on the total cost of offshoring maintains neoIT.
"Salary differences are huge when comparing IT jobs onshore versus offshore, but taken in isolation they don't provide an accurate picture of the total cost of offshoring since it requires a more complex management and governance structure in order to ensure that goals are met," stated Avinash Vashistha, managing partner, neoIT.
The report provides an overview of various country-specific and industry factors that affect ITO salaries. Of particular interest is the roundup of ITO average salaries and the differential between offshore and nearshore locations. The report highlights average IT salaries in the APAC [Asia Pacific], EMEA [European, Middle East and African] and Americas regions.
The report concludes with a summary of the potential cost savings the US organizations can gain by outsourcing IT to offshore and nearshore countries that serve US markets significantly.
