India: Information Guide & Resources Directory

 

Why are most companies moving to India?

 

 

There are several reasons why many company's are relocating to India. Not all company's are relocating to India, some are also relocating to cities like Chennai, Sao Paulo, Brazil, Wellington, New Zealand, Mexico, Argentina, Brazil, Venezuela, Canada and China because these countries obtain lower wage coasts and they get to escape from high taxes. The wages in India are as low as 80% than United States, Europe, and other Asian coutries. Over the years after relocating a large IT company the estimated saving of $138 billion for the top 100 financial service firms. It is estimated that “over the years 2 million jobs will relocate to India, 850,000 from United States, 730,000 from Europe, and 400,000 from other Asian countries.” Some of the big company's that have already relocated are Dell, Delta Air Lines, and American International Group. Although most of the IT companies are relocating, some jobs that can not relocate are the health care, other in person services, real estate, financial services and security. Another reason why companies will relocate their jobs overseas because “software engineers in the United States earn an average annual salary of $75,000 according to the U.S. Labor Department; those jobs pay about $20,000 a year in India.”