Engineers’ pay in India growing fast; China, not so much

by Dave

In a discussion here Tuesday (June 10) at the Design Automation Conference (DAC), representatives from the world’s two most talked-about–and feared–economies, India and China, painted a portrait of high-tech growth that is proceeding piecemeal in both countries, and at different speeds, toward parity with the West.

Among the more startling predictions, from S. “Jani” Janakiraman, president of the Indian R&D firm, Mindtree, was that within a decade engineers in India ” where thousands of U.S. technology jobs have been outsourced ” will catch up to salaries earned by their American counterparts.

However, for the same equalization to happen in China, Mcallight Liu, executive editor of ECN China, “is a long way to go.”

Janakiraman said the Indian software design industry is growing at an annual rate of 22-25 percent, forcing a huge influx of new engineering graduates. The result for workers is a boost in the salary scale of as much as five percent a year. Not long ago, Indian engineers’ salaries were one-third of those in the United States. Now they’re close to 50 percent and, in ten years, said Janakiraman, there will be no difference.