It seems that the long predicted flattening of India's IT salary bubble is finally happening. I just read this in the Indian Times.
EDS is giving an average increment of only 8 per cent to 10 per cent this year, substantially lower than the 18-20 per cent it gave last year.
‘‘Indian companies have so far been effecting unsustainable salary increments. It has clearly hit a correction mode this year,’’ says B S Murthy, CEO of hiring firm Human Capital. Wipro’s average salary increments are expected to be in the range of 8 per cent to 10 per cent against 12-14 per cent last year.
This is huge news. If you don't already know the scoop on IT salaries in India, here's the recent trends for average IT salary increases (cobbled together from a bunch of different reports):
To put this in perspective, if you were a college grad working in India in 2000, and you landed a job with a base salary of $4000, and you experienced "average" wage increases each year, you'd now be making a bit over $30,000 a year.