Author | Dongmei interview guests | Xiao Ran, general manager of thoughtworks India District
Is the dream of India IT burst?Two months ago, a global technology customer replaced an Indian executive with a Vietnamese executive.Since then, the situation has begun to change, and more and more Indian developers and US developers have been unemployed.
Since the prosperity of IT in the 1990s, the Indian information technology industry has made great progress, and has also spawned some top Indian top technology employment providers.With the outsourcing wave of top American technology companies, the Indian technology industry led by companies such as Infosys, Wipro and Tata Consultation Services has achieved rapid development in the past few decades.Indian outsourcing is cheap and easy to use, and it has become the consensus in the heart of IT managers
Indian technology companies can provide American companies with superb technology and English -speaking engineers, and the cost is only a small part of the employment of local employees. This is a win -win situation for both parties.The Indian Institute of Technology (IIT), Birah Institute of Technology, Piraney Institute of Technology, Manipar Institute of Technology and other top Indian colleges have held senior positions in global technology companies and became the brand ambassador of the country’s science and technology think tank.
In organizations around the world, India has become a typical technology outsourcing land.In fact, the name of India has also become synonymous with offshore outsourcing, and the word "Indian outsourcing" has already been deeply ingrained in the minds of many IT managers.The reason is as follows:
Affected by historical factors, their English level is high.
India has a large population. As of July 2024, India has become the world’s largest population.
They have invested a lot of investment in business processes outsourcing (BUSINESS PROCESS OUTSOURCING (BPO) and high -tech positions.With such a large population and language advantage, India is naturally stared at by many global giants.As early as 2016, Google launched a plan to provide training for developers of 2 million Android mobile phone operating systems in India.The plan is designed to help them develop innovative mobile applications on the platform.
Earlier this year, Microsoft also released a plan called "AI Odyssey", saying that it will provide AI technology and tool training for 100,000 Indian developers.
Microsoft said: "The AI Odyssey program provides a comprehensive learning experience that can help developers to obtain and display the relevant skills required for the use of AI technology that meets business goals and results."
Irina Ghose, managing director of Microsoft India, said: "Artificial intelligence is the future of innovation, and India has led this trend with its technical talents.Power and creativity are welcome to join us to create meaningful artificial intelligence solutions together and contribute to the Indian economy. "
Technology has become one of the largest sources of employment in India. According to incomplete data statistics, about 5.4 million developers (including outsourcing and contract systems) in India work in various technology companies around the world.
So, what is the cost of Indian IT employmentKolkata Wealth Management?According to a data from the IT service consulting company Protonshub, the five major factors of skill level, professionalization, experience and professional knowledge, regional and technical stacks when employed software developers in India, will affect the salary level of employees.
The cost of hiring junior developers must be lower than the cost of hiring intermediate and senior developers.
Primary developer: Primary developers who have less than 2 years of programming experience can perform basic programming tasks under the supervision of experts.Their annual salary is between 200,000 and 500,000 Indian rupees (about RMB 17,000 to 43,000 yuan).
Intermediate developers: Intermediate developers with 2 to 5 years have a better understanding of software development principles.They can handle more complicated tasks under less supervision.Their annual salary is between 500,000 rupees and 1.2 million rupees (about RMB 43,000 to 100,000).
Senior developers: They have more than 5 years of experience.They can manage the entire project and solve complex problems.The annual salary of these people is between 1.2 million and 2 million rupees (about RMB 100,000 to 170,000).
Developers with specialized knowledge charge different fees based on their skills.For example, front -end developers are responsible for UI and UX, while back -end developers focus on databases, application logic and server -side.However, the full stack developers can handle the front and back -end tasks at the same time, and the charges are higher.Similarly, mobile app dedicated to iOS, Android or two mobile application developers will charge different fees based on the complexity of the mobile platform.Bangalore Stock Exchange
Experienced developers have better experience, so recruitment costs are higher.Developers with successful project records and high -demand technical knowledge are higher.
The technology stack also affects the employment cost of software developers.Developers focusing on specific fields or popular technologies will charge higher fees due to their professional skills.For example, the fees of developers who are proficient in AI, ML and blockchain will be higher than developers who use common programming languages such as Java or Python.Similarly, developers who are proficient in frameworks such as React, Angular, or Django will also have higher charges because they have greater demand for their skills.
In addition, cities such as Bangalore, Delhi, Mumbai, Haidraba, and Puna are called IT cities.The average cost of hiring software developers in these areas will be higher.
Nowadays, the situation has reversed. Other countries in Southeast Asia provide the same service at a cheaper price, weakening India’s competitiveness.This has led many US companies to at least part of outsourcing business to countries such as the Philippines and Vietnam, which has affected many employment in India.
According to CodeSubmit data, in 2023, the average annual salary of American developers was 100,000 US dollars (about 720,000 yuan), and the average annual salary of Swiss developers was close to $ 100,000 (about 700,000 yuan).
In contrast, even the annual salary of senior Indian developers is more than four times different from the average salary level in Europe and the United States.
However, even if the cost of employment has been low, Indian employees are still facing the danger of being replaced.Working for nearly 12 hours a day, Vietnamese developers "rolled" Indian workplace
Recently, an Indian technician recently posted on Reddit, telling how his team was replaced by Vietnamese developers.The technical person named "Tht_rajasthani_guy" lamented on the social network forum. After working for customers for a year and a half, he and his team are now out of the door.
"Oh my god! Our entire team is replaced by Vietnamese developers," wrote the user name of @tht_rajasthani_guy.
"We have worked for this customer for nearly a year and a half, and everything goes well. Two months ago, they replaced the engineering director from India with a Vietnamese engineering director.Indian developers and even US developers have been replaced.Essence
What’s even more ironic is that as early as 2020, an article in "The Register" broke the news that Indian IT service giant HCL is looking for 3,000 outsourcing employees who can provide services to their global customers in Vietnam.Companies from India, an super "outsourcing" country, also made a "middleman".
In fact, the experience of the Reddit user @tht_rajasthani_guy team is not accidental.In recent years, Vietnam’s IT industry has developed rapidly and has become an important business center for global technology entrepreneurs and local startups.The number and quality of the Vietnamese IT Talent Library are also expanding.The country trains about 80,000 IT graduates each year, and a large part of them specialize in computer science, information technology and other related fields.According to Adamo Software, the number of senior developers with more than 5 years of experience accounts for about 30%, and senior developers with less than 3 years of experience account for 52.5%.
The "Global Software Outsourcing and Treat Rate Guide" released by Accelerance released Vietnam as one of the two major IT outsourcing destinations in Southeast Asia, and was rated as the second most promising in the Asia -Pacific region in the Global Skills Index (2020).Great country.
@tht_rajasthani_guy said that the cost of Vietnamese developers is much lower than Indians.
According to a blog post from the Vietnamese solution company Incorp, the minimum monthly salary of Vietnamese IT practitioners is 4.2 million Yuenan Shield (about 1200 yuan), with an average maximum salary of 22.5 million Yue South Shield (about 6,400 yuan), Including bonuses.
According to the latest data, Vietnam’s average monthly salary rose from 6.8 million Yuenan Shield in the fourth quarter of 2022 to 7 million Yue South Dun in the first quarter of 2023.
@tht_rajasthani_guy also wrote that Vietnamese developers are willing to work for nearly 12 hours a day.However, Vietnamese developers don’t seem to be so "easy to use".He pointed out that Vietnamese developers are facing challenges when expressing English.In Vietnam, the main language is Vietnamese.
"So we are no longer the cheapest," a person said in response to the post of @tht_rajasthani_guy.
Another netizen wrote: "We have replaced IT talents with middle -class skills in the United States, and now we have been replaced. Life is a cycle.
For a long time, people have always believed that Indian software professionals are in line with the standards expected by technology companies: technical strength, English knowledge, adaptability (adapting to new culture), and become a feasible labor force due to their low wages.
However, another respondent held an optimistic attitude. He said, "Unless the delivery is the standard, the contract / working will be transferred back to domestic developers sooner or later, and then they will be transferred to overseas on the grounds of cutting costs."
Another person who is not very satisfied with the world economic situation said that this problem is everywhere, not just the IT industry."My brother is engaged in marine engineering. He said that many people now come from Vietnam because their salary is very low. All of us will be replaced. This is only a matter of time," he wrote.Is the outsourcing really cheaper, the better?
In this way, will more Indian developers be replaced by Vietnamese developers with lower prices?Is the employment cost really better? What are the hidden dangers behind the low -cost outsourcing employees?
In an interview with INFOQ, Xiao Ran, general manager of Thoughtworks India, said that with the sustainable development of the economy, Vietnam has accumulated a strong accumulation as a young country as a young country.But the actual situation is that there is still a big gap between the supply and demand of IT talents. At present, it is too early to say that "Vietnam replace India".
Another level also lets us see that "any enterprise is a software company" has become a reality, and most companies have continued to increase their dependence on software systems and digital platforms.This also brings software development and operation and maintenance to become the daily work of enterprises, and even becomes a key part of "Keep The Lights On".
Xiao Ran mentioned that the development and operation and maintenance of enterprises must be price -sensitive, and enterprises hope to reduce the cost of continuous operation.Therefore, it has created a situation in which the market is used to snatch the market.Especially in the continuous operation and maintenance field of relatively standardized clouds and commercial kits, this price -oriented outsourcing is still obvious to follow the trend of low cost.
The competition for the outsourcing market, especially the technology outsourcing market, has become a consensus in the industry.But in the face of the urgent needs of economic downturn and the transformation and upgrading of the software engineering industry, we must not only see the challenges, but also grasp the opportunities.In this era of rapid change, technological innovation is reshaping the industry structure with unprecedented speed, and software engineering is the cornerstone of technological innovation, and its importance is self -evident.
On the one hand, the economic downturn has prompted enterprises to focus more on cost control and efficiency improvement. This requires the software engineering industry to fundamentally change the traditional operating model and accelerate the transformation of standardization, automation, and intelligence.Xiao Ran said that although cutting -edge technologies such as generating AI have made rapid reduction in the size of the team a seductive fantasy, the reality tells us that the real competitiveness comes from the improvement of team engineering capabilities and the application of efficient automation tools.DEVOPS and Effective Movement have pointed out the direction for us. They emphasize not only the use of tools, but also the deep integration of team culture, process optimization and technological innovation.
On the other hand, for technicians, this is an era full of challenges and opportunities.With the preliminary application of AI in the fields of coding, testing, and other fields, tools such as GitHub Copilot greatly improved development efficiency, but at the same time, it has also spawned new skill requirements and positions, such as large model adjustment engineers, data vector chemists, etc.EssenceThese emerging positions not only require technical personnel to have deep professional knowledge, but also their ability to learn and adapt to changes.Therefore, continuous learning and cross -border integration have become an indispensable skill in our career.
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