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Thursday, October 11, 2007
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Came across this very interesting article on the Economist.com about Capturing Talent in China. In some ways it isn't news, given the global need to capture and retain talent. But it says something that flies against the outsourcing trend.
For example, this seems to say that the IT jobs and HR back office functions in the west will not all be outsourced. The article says that in China "[e]ven a junior software-engineer can expect to take home $45,000 a year." Compare this with the west. According to Salary.com, a Programmer I position in the US market would have a national wage average of about $53.000. (In fact it has a bell curve putting the range between the 25th percentile and the 75th percentile in the salary range of $44,000 to $63,000.) Now of course in the IT industry, many point to India instead. This article points to Indian salaries being 75% of US ones.
What is the benefit of outsourcing technical functions to such markets?
As the global economy becomes more integrated, there is a leveling effect on wages.
So from a data integration standpoint, outsourcing will be a major impact on connecting endpoints. But data integration will not become synonymous with outsourcing.
9:23:06 AM 
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© Copyright 2007 Paul Kiel.
Last update: 10/11/2007; 9:27:03 AM.
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