London, November 16:
Western companies prefer operating in India rather than in China because of Indiansâ€™ expertise in the English language and lower wage costs, a leading human resources agency has said.
Wage costs are higher in China than in India, the Mercer Human Resource Consulting concluded in a report based on a study of more than 600 companies in the two countries.
Some senior managers and professionals in China reportedly earn more than double the rates paid to Indian managers.
â€œAlthough wage costs are lower in India, there is a high demand for skilled workers there, particularly at the executive level,â€ said Mark Sullivan, worldwide partner at Mercer, â€œIf demand continues to outweigh supply then we can expect wages to increase substantially over the next few years.â€ Average pay rates have risen by 11.5 per cent in India in the past five years compared with 7.5 per cent in China.
India had â€˜an enviable pool of high quality, talented professionalsâ€™ and the largest population of English speakers outside the US, while China had attracted foreign manufacturers with its production facilities and low-cost labour, the agency said.
China was now â€œacclaimed as the worldâ€™s preferred manufacturing hub, companies are increasingly looking to outsource their back-office operations to these countries to reduce overheadsâ€. Annual salaries of Indian project managers averaged $10,039 compared with $23,409 in China. The pay of Chinese financial analysts, at $13,194, also outstripped Indian salaries of $8,408 for the same job.
Living costs in Chinese cities were much higher than in India and â€œcompensation levels of over 100 per cent of Indian pay levelsâ€ were abundant in Beijing, â€œparticularly for senior level marketing, IT, human resources and logistics positionsâ€, the study said.
Chinese pay was higher for 95 per cent of the 42 jobs considered in the study.