The Indian grey matter rating is down. "the economic times" Bombay daily revealed Friday that in India the Oracle software giant was preparing to revise downward wage increases this year. After between 12 and 14 percent increases last year, the employees will have to settle for 2008, from 7 to 8. Same trend at IBM, which will remove a portion of their benefits in kind, such as access to housing facilities to its employees. Recently, the largest Indian Editor software, TCS, announced a decrease of the variable salary of its employees. Could multiply examples.
It is the US slowdown which explains this shot of cold. As in the Indian software industry, similarly than in the "business process outsourcing" (the externalisation of certain tasks, such as the famous call-centers), Indian companies live in a relationship of dependence on their American customers. The United States represent more than 50 of the demand for software sector alone. A symbiosis which is explained by the dynamism of the US economy, the large Indian diaspora in the United States, the linguistic proximity... and geographic distance. This is the point of view of Pinal Patil, who leads the software Persistent Systems company communication: "The Americans are the very opposite." Therefore the evening, they leave their office after sending us specific requests, and the next day morning we have responded. "Therefore, when the US machine flu, is any sector concerned in India. The question is not trivial for the country: beyond the two million employees of the Indian high-tech, it is estimated at ten million the number of people living in indirectly. Since the beginning of the year, the technology companies who are best at the Bombay Stock Exchange are those who work primarily in the Indian market. And in TCS, "it's now 10 years that is diversified customer to reduce dependence on the United States", explains the head of the international marketing of the group, Jayant Pendharkar.
Beyond this troubled economic, light tightening the screws currently imposed on employees in the sector also reveals progressive awareness: by paying more in more talent, Indian companies see their competitiveness erode. "We still have margin," temper Anand Deshpande, Director Persistent Systems. "But about five years ago, if current trends are, we can really make a difference in the cost;" It is then our expertise that we need to convince. "The problem is also in the pharmaceutical industry. Amar Lulla, who heads the laboratory of Cipla, said even that "wages were multiplied by three in three years, and our difference with Western production costs has become almost non-existent".
Manage the hierarchical pyramid
In fact, everything depends on the profile of employees: more expertise is high, there is less difference with Western labour costs. But specifically, believes Swati Piramal, it leaves a lot of margin to the India. The head of the strategy of the Piramal Healthcare Group, considers that "it is just a question of management of the hierarchical pyramid." Explanation: "big heads", often returning from the United States more than 70,000 people have returned from California year last cost the same here as elsewhere. But "the lower base remaining salary in India, we can make work of large teams around these major researchers, and we earn in efficiency", explains Swati Piramal. Therefore the "bones of the grey matter" that the sector might have salvation.