Sunday, March 2, 2008

India IT salary growth

In a previous post I wrote about IT India off-shore costs rising and how the open source model offers a better alternative to infrastructures savings. Today I came across this article on Forbes putting some figures on Indian IT salary growth:

As the fight for talent intensified last year, salary hikes rose from
the previous year’s average of 14.4%, according to the study. In 2008,
compensation is expected to increase by an average of 15.2%, making it
the fifth consecutive year that salaries have risen in excess of 10%.

Real estate salaries grew by an average of 25.2%, compared with 17.6% in retail and 16.4% in banking and finance.

Clearly, the IT off-shoring model can not be sustained with these numbers in mind. A mixed software development model is emerging, where commercial code representing significant, core competitive advantage follows the classic copyrighted model, while larger parts of the development effort is released as open source for the benefit of higher quality service and lower infrastructure costs. Nothing new really under the sun: major innovators such as Apple, Google and Yahoo have followed this path for years now, with the introduction of operating systems and search engines based on open source code. Microsoft and Oracle are following: here and here.

New software players like Trolltech and MySQL have adopted a dual licensing model, where open source code can be either used in commercial applications for a fee, or else modifications to the original code must be released with the same open-source license.

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