India’s tech talent wages are experiencing a significant decline, suggesting potential shifts in the global outsourcing landscape. A report by Deel and Carta indicates that the median salary for engineering and data roles in India will be around $22,000 by 2025, marking a drastic 40% decrease compared to the previous year. As the wages for tech talent in the US, Canada, and Europe continue to ascend, India’s diminishing wage levels highlight the need for CIOs to reassess their trust in India as a reliable offshore destination.
The report shows that India has the lowest median salary among 15 countries surveyed, while the US leads with $150,000, followed by Canada at $121,000 and the UK at $117,000. Emerging markets like Brazil and Mexico also surpass India in this respect, showcasing a trend where global demand for high-value roles in AI and cybersecurity contrasts sharply with the shrinking demand for general engineering roles that India traditionally filled.
Experts suggest that this shift reflects a transition from a low-cost labor market to one focused on advanced technical skills, emphasizing the need for businesses to diversify their outsourcing locations. It is advised that CIOs broaden their recruitment scope rather than solely relying on traditional outsourcing hubs. This strategic pivot is essential for maintaining competitiveness in an evolving global market where efficiency and expertise take precedence over mere cost-cutting.
👉 Pročitaj original: CIO Magazine
