Cheap labor is the overwhelming factor why many international companies have turned to China for jobs normally done at home. In Canada and the United States, thousands of North American jobs have been cut, as large companies have moved their operations to China to increase their bottom line.
According to a new survey from Mercer Human Resources, however, these employers may be better served by taking their employment opportunities to India instead. You see, 95% of skilled workers in India command a lower base salary than those in China. The difference in the salaries isn’t peanuts, either. Check this out:
— The average software development engineer in India starts at a base salary of US$10,277. In China, however, the same worker demands $13,457. That’s a difference of 31%.
— The average financial analyst in India earns a base salary of US$8,408, whereas the average analyst in China earns $13,194. That’s a difference of 57%.
— The average customer service worker in India brings home a base salary of US$1,601. In China, the same position earns US$2,418. That’s a difference of 51%.
— The average skilled laborer makes US$1,853 in India. In China, an employee with the same skills would earn US$2,334. That’s a difference of 26%.
If you were a large, multinational firm looking to hire four people, one in each of these employment capacities, what would you do? Hire workers in China because that’s where everyone else is hiring, or hire your employees in India and save 41%, on average, in payroll expenses?
The choice is obvious, isn’t it? If you had any doubts before of where the next hot spot will be for business and a booming economy, let me make this clear: India’s it!