Offshore IT Rates

Just got email email from some company in the UK providing outsourced IT from India. I would have immediately tagged the email as spam but the rates they provided looked interesting:

We are currently dealing with 45 IT / Web Development Companies in the U.K. and USA. We provide resources of different skills set (Skills and Costs Mentioned Below) according to your project needs. Instead of hiring an employee in the UK you are getting the same services at less than half of the cost and you dont even have to worry about office space and other employee needs. Our employees will be always available on MSN/ Email/Skype/Phone and they will send you the time sheets or status reports according to your needs.

Please see the cost below and you will find a major difference in costs:

Web Designer (Skills : Dreamweaver/Adobe Photoshop/Flash MX) : 450 Pounds/ Month

Web Developer (Skills : PHP/MySql) : 750 Pounds/ Month

Web Developer (Skills : ASP/HTML/VBSCRIPT/JAVASCRIPT/SQL SERVER) : 750 Pounds/ Month

Web Developer (.NET) ( Skills : ASP.NET/SQl SERVER) : 800 Pounds/ Month

Application Developer ( Skills : VB/VB.NET/SQL SERVER) : 800 Pounds/ Month

Java Developer (Skills : J2EE/ JSP/JBOSS/TOMCAT/MY SQL ) : 800 Pounds/Month

SEO Executive (Skills : Link Exchange / Keyword Planning/ Paid Activities) : 650 Pounds/Month

Data Operator (Skills : MS Office) : 300 Pound/ Month

Note all the prices are exclusive of VAT.

The rates are in UK pounds so you need to multiply them with 1.7 to convert to US dollars so the Data Operator actually costs USD $510 (Php 26,000) and the .NET Developer is USD$1,360 (Php 69,000).

Of course, the company gets a chunk of that before they pay off their developers. Decent rates for an offshore development work though the .NET developer seems to be a little undercut. Local salaries for the same ranges somewhere from Php35k (1 year exp) to Php80K (3 years exp). A former officemate’s wife is working directly with an Australian company from home and gets Php 90k (net) for it.

Does that mean skilled Indians are cheaper to hire then Filipinos?

What is the monthly cost for a Web Designer with Dreamweaver, Photoshop, and Flash skills?

The monthly cost for a Web Designer with those skills is 450 Pounds.

How does the cost of hiring an offshore developer compare to hiring in the UK?

The services are provided at less than half the cost of hiring an employee in the UK.

What is the conversion rate from UK pounds to US dollars mentioned in the article?

The rates in UK pounds need to be multiplied by 1.7 to convert to US dollars.

React to this article:

12 Comments

jessica · 16 years ago

hi all,
It has lot of useful and interesting data.
******************
jessica,
Best Offshore Investment

Eper · 17 years ago

Hi! My husband is a Microsoft Certified ASP.NET developer with over 7 years experience. I’m just curious whether you could share with me where your officemate’s wife works (the one who is working from home for an Australian company).

Hope you could help me out.

Thanks!

Scott · 18 years ago

I am contacting you through this contact form as there was no email address available. We would be interested in purchasing advertising on your blog http://www.yugatech.com/blog/careers/offshore-it-rates/. Please get back to me using the email address I have entered if you would be interested in discussing this further.

Emel Mingueto · 20 years ago

hello, how could i contact to the job hiring ? i want to apply as an SEO Executive. I do Link Exchange, Keyword planning and more…

alfa · 20 years ago

Hi,

How much should a newbie charge for an SEO project?

Thanks in advance!

noel · 20 years ago

I’ve heard lots about these indians having very low salaries. And a lot of them really do offer services way below what filipinos offer. Labor in india is also very cheap.

However, I’ve also heard a lot of unsatisfactory work done by them.