The death trap for outsourcing– the wage hyperinflation in India
Special Correspondent
Feb. 6, 2007

The salaries in India are rising rapidly as there is a shortage of qualified people in India. Asian workers are expected to enjoy the highest pay hikes in the world in 2007, because of robust economic growth, talent shortage. India lines up in the top.

Real wage increases, which represent workers'' annual salary rises after taking inflation into account, are expected to climb an average 3.6 per cent in Asia this year, a 50 per cent jump from 2.4 per cent in 2006, according to a survey by human resources firm ECA International.

American firms are already reporting lower quality of output due to shortage of talent in India. The IT sector has started subcontracting its work from USA to further lower quality regions of the world without letting the client know anything about it.

The reason for such wage inflation comes from not only demand supply situation. Yong Indian youth these days realize working in the outsourcing industry is not going to give them a permanent career. They will thrown in the garbage bin after being exploited for ten to fifteen years.

They see what happened to people in forties and thirties in India. They demand far more salary before getting into the trap of outsourcing.

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