In a symbolic shift, IBM's India workforce likely exceeds U.S.
The wage data is also supported on sites such as PayScale, which, for instance, list the average pay for a senior software engineer developer in India at $10,519.
Other U.S. IT firms have expanded in India as well to take advantage of lower wage rates and its educated workforce, so IBM is hardly alone here. IBM has also expanded in India because of the opportunity created by that country's economic growth.
Although IBM does not provide specific breakouts of its business in India, it has made a steady stream of customer announcements ranging from data centers projects, to hardware and software platforms, as well as services at a string of major Indian firms, including Tulip Telecom, Nakoda Textiles, DPSC (Dishergarh Power), Ester industries, and Thriveni Earthmovers.
IBM does report revenue growth for the so-called BRIC countries -- Brazil, Russia, India and China. In its last full fiscal year, 2011, it said revenues in those countries increased 19%, while revenues in the Americas were up 7%.
The Indian IT market is about $100 billion, according to Nasscom, an India-based industry group -- a relatively small amount. IBM last year reported its full year Americas' revenues at nearly $45 billion, and total revenues at nearly $107 billion.
Former IBM CEO Sam Palmisano outlined his vision for India in 2006, in Bangalore before 10,000 IBM employees. It called for attacking the challenge from Indian services firms on two fronts, by reducing the cost of services as well as positioning the company as a top IT provider in India.
Ron Hira, a public policy professor at the Rochester Institute of Technology, believes the impact of IBM's outsourcing model on the company's bottom line shows up in the cost of goods sold, which includes labor costs, which went from 57% in 2003 to 47% in 2011.
IBM is a "good microcosm for the American economy," said Hira, "with increasing corporate profits, higher stock prices, and a weak U.S. labor market."
Patrick Thibodeau covers cloud computing and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov or subscribe to Patrick's RSS feed . His e-mail address is email@example.com.
- Microsoft's new CEO and his first-100-days plan
- Personal history may thrust new Microsoft CEO into visa debate
- As Dell cuts, Apple adds jobs in Austin
- Dell cuts 'small percentage' of workforce
- Lenovo's Motorola, IBM server buys will likely get strict U.S. security review
- Welcome to the era of radical innovation
- China passes Japan to become world's 2nd largest IT market
- BlackBerry sale might not include smartphones
- Tech hiring accounts for 10% of U.S. employment gains
- Gartner offers more data on PC decline and tablet surge
Read more about IT Careers in Computerworld's IT Careers Topic Center.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- SDCRAA Case Study: Adapting ERP to business needs This case study goes in depth about San Diego County Regional Airport Authority's created flexibility for a changing industry.
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- What Datapipe customers need to know about the new PCI DSS 3.0 compliance standard This handy quick reference outlines what PCI DSS 3.0 is, who needs to be compliant and how Alert Logic solutions address the new...
- The 12 PCI DSS 3.0 requirements addressed by Peer 1 Hosting This handy quick reference outlines the 12 PCI DSS 3.0 requirements, who needs to be compliant and how Alert Logic solutions address the...
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All IT Careers White Papers | Webcasts