Indian IT firms in the US pay higher average wage than local companies

The median wage paid by local companies in the US is only $94,800, whereas Indian companies pay $96,300 on an average.


A research has recently revealed that the average wage paid by Indian IT services firms to their employees in the US, is about $96,300. On the other hand, local companies in the US pay their staff a median wage of only about $94,800. This means, most India-based or India-centric information technology firms pay almost two per cent higher wages to their staff as compared to local employers in the US.

The research was undertaken by IHS Markit, and the report was sponsored by the National Association of Software and Services Companies (NASSCOM).The study revealed that approx. 1,03,000 out of the 1,70,000 employees in the Indian companies worked in the overall computer systems design and associated services industry in 2017.

The report, which was based primarily on the US Bureau of Labor Statistics’ data along with other government data, clearly indicates that these Indian companies form a very significant part of the US economy. It also removed all doubts of Indian companies paying lower remuneration to their employees in the US and puts to rest rumours that they are geared to displace local jobs. These reports also nullify the allegations that Indian companies in the US are out to systematically underpay local employees.

However, with the US government remaining sceptical of all immigrants, it is natural for employees of Indian IT firms to be considered as channels for offshoring. Meanwhile, Indian IT services companies have been focussing on increasing the number of local hires in the US.

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