Chinese know how to cut costs

[Arun Mehta <indata@satyam.net.in>]

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http://www.economictimes.com/today/03tech07.htm

India’s software MNCs look to China for cheap talent

Snigdha Sengupta
...
The good -- or bad, depending on your point of view -— news, is that the

Chinese professional will be at least 15-20 per cent cheaper than his
Indian counterpart.

Today, a high-end Chinese software professional costs $20,000 per year
against the Indian rate of $12,000 per year. But according to Wipro
vice-president (corporate finance) Suresh Senapaty: “In a couple of
years,
when a larger resource base builds up, the cost structure in China will
be
lower than India by at least 15-20 per cent.”

Nasscom president Dewang Mehta predicts that Indian IT firms will
probably
start out with re-routing their low-end activities, like coding and
maintenance, to Chinese branch offices or subsidiaries.
____
Needless to say, I disagree with Dewang when he calls coding a "low-end"

activity. If you are doing package software or are any good at your
craft,
programming (a less disparaging way to describe the same activity) is
the
best paid job in the business.



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