What are the costs of hiring resources in India?
The scenario of employment in India is a fantastic proposition for any type of company. Talent is abundant, significantly low overheads and low turnover of employees are the primary motives behind outsourcing by Foreign Companies. This is a recipe for success for a foreign company setting up an office in India. In this article, let us understand the overall cost of human resources in India.
In the Indian context, the wages and salaries are relatively low as there is no scarcity of supply. Over the years, these overheads have been quite stagnant with a significant increase in wages of skilled labor.
With the advent of technology and access to knowledge through a multitude of sources, the working class is well equipped with requisite skills to earn a higher wage.
According to a study, the majority of the working population is equipped with basic skills and are typically employed in micro, small and medium enterprises employing anywhere between 10-1000 employees. The average wages of an Indian employee are $148 (~11,000) and vary geographically.
Skilled professionals go through a wide pool of knowledge and respect with access to international schools and reputed B-Schools has resulted in an influx of qualified professionals whose average income is about $13,000 (~9,10,000) varying in the basis of skill and experience.
As is evident in every economy, the cost of replacement of skilled labour is quite high as there are a number of factors that go into selection of the right candidate. The opportunities for skilled workers also play a vital role in turnover of labour. However, replacement of unskilled labour is relatively easy thanks to the abundance of options.
Alternatively, companies can also explore remote operations by choosing services like professional agencies of PEO/EOR who handle most of their backend activities & hire a team on your behalf to start your business operations in India.
The low cost of human resources in India boils down to the low cost of living in the country. There is an innate sense of gratification in the purpose of employment and it is deeply embodied in Indians.
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