Thursday, July 19, 2007

Salaries in India : Overseas Options

It is indeed a catch22 situation that I am in-as a recruiter!!

Over the last few months, I have been bombarded with questions -from a lot of prospective returning Indians-about the salaries in India..and their true worth. My economic theory of the UN's PPP theory in the past- is no longer convincing for most-who can quote references of atleast a couple of their acquaintances, who have picked up some kind of dollar equivalent salaries! Yes, I maintain there are but a limited number of such examples...more exceptions, I brushed off!

The media too loves to go gaga! Just read a sample and one wdnt know whom to really believe?

So the only resort for me was- to get back to the basics and explain to each one willing to listen..look here are my clients-these are the openings that I am working on -and an indicative range of salaries they have proposed!!

Freeze. The tables are turning!!

Coming to the point, the last few weeks I have been working some overseas assignments-for which Indian professionals were being sought!More specifically -a Director level position in a pharma company in China, a product manager in Muscat, a few insurance professionals for a leading MNC bank in Middle East -and a printing & packaging company in Dubai.

As the offers reach finalisation, the expectations of most Indians residing here - regarding the overseas offers is just mindboggling! When most of them factor the opportunity cost of going away from the Indian action, add the savings potential, my clients seem to realise that their budgets arent just enough to attract even the average performers out here.

Lest you think I am not angling for the 'right profiles', just have a look at the reality- Mr Rupee bullies Indians in the Gulf .

-Weakness of the dollar has dragged the value of Gulf currencies to which it is pegged. As a result, Indian workers' salaries are nearly 30 per cent less in terms of rupee than a year ago.

-With another 15 per cent dent due to high livings costs, the salary of an average Indian in the Gulf remains the least attractive among the Asians. (Housing rates have gone up by 30 per cent in Riyadh, Jeddah, Abu Dhabi, Sharjah and Doha, while Dubai has seen an unprecedented 50 per cent rise as demand for housing has been growing by leaps and bounds.)

And as I sat down to articulate my thoughts, here is a mail from a pal of mine..a Kelloggs alumnus asking "If I find a good role am very open to India. There is so much activity now in India that I am thinking its worth exploring options there. Here in the US its all about cost cuts and low growth....

What do you think.....thoughts ? "

Well..what do I write?

2 comments:

Trakin said...

Achyut, Very good article. The rupee appreciation has hit a lot of people quite hard and add to it the salary rise in India. Why will someone go abroad, when Rupee is moving upwards so fast- and Indian salaries are moving even faster :)
No doubt it is time to move to India. Need to get in touch with you soon ;)

Anonymous said...

Achyut:

I am encouraged at the fewer number of "!" in your current post. Nevertheless, I must point out that "!" is a poor substitute for its humble, pedestrian cousin, the ".".

I am no punctuation puritan, but when punctuations pop up where they don't belong, they only serve to distort the tone of a sentence.

I may be forgiven if I come across as nit-picking...