GLOBAL DEMAND FOR INDIAN TALENT
Global Human Resources firm Hewitt Associates made recently an Annual salary report once again raising the question whether India will continue to rule the IT roost. The report says that the average Indian salary has gone up by more than 14% during 2005 which is the highest in the Asia Pacific region.
Consequently this lead to a serious thinking process and two important points emerged. One is such increase in wages lead to a dwindling in the amount of business that he country has been attracting owing to its low overheads. On the other hand some industry experts feel since the salary hike is mostly at the top level, the manpower industry will not be affected too much. Rather it will generate more global talent and global standards of working.
The changes have been at the top of the pyramid. An increase in cost at this level will directly see an increase in the productivity of services and operations. Also there will be a reverse brain drain. Indian companies operate at Global standards they are looking for talents with exposure to diverse markets, hence geographic boundaries to find talent at the top level will vanish.
The above will significantly impact the talent pool as even expats from across the globe are ready to take up assignments in India. Indian professionals can now aspire to be global while still being in India unlike in the past where they had to go overseas for these opportunities.
Industry players feel the sudden salary hike is a direct result of the offshore delivery model that has been adopted by the IT companies.
The prime driver is the huge focus on the off shore delivery model being adopted by all major IT companies. All such companies treat their top executives as global resources ready to be employed any where across the world. That is also one of he major reasons for salary parity with other global positions.
Indian organizations grown locally in their constant quest to match global standards and capture larger customer bases locally and also around the world are seeking good talent and therefore are aligning their compensation practices to global standards strengthening their reward management practices and focusing on â€˜pay for performanceâ€™ to attract and retain talent to enhance productivity.
Indian companies are becoming Global brands and therefore there is a need for CXOs with Global experience, expertise and outlook. In the present globally competitive environment, CXO slots in Indian firms will have a mix of both Indians and foreigners. It is already happening in many industries.
The pattern in which salaries have been increased is also an indicator that the rise will only elevate the level of performance, gradually getting closer to global standards. The salary rise has been in terms of â€˜paid for performanceâ€™ rather than increasing the salaries. The point of reference for most organizations is measuring and managing performance on formal platforms and biannual performance reviews.