China's Workers Paid More Than Indian Counterparts: Study

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"While it is far cheaper to employ staff in both China and India than Europe or the United States, India appears to have the advantage of slightly lower wage costs," wrote Mark Sullivan, a senior London-based consultant at Mercer.

London (AFP) Nov 15, 2005
Multinational companies employing lower-paid Asian workers face a higher wage bill in China than in India, according to a report here on Tuesday.

According to the Financial Times, a survey of 600 Indian and Chinese businessess by US group Mercer Human Resource Consulting found that 95 percent of 42 specific job roles were cheaper to source in India than in China.

The study noted that both emerging economic powers have become prime locations for investment by multinational organisations because of their skilled labour and low wage costs.

Sounding a note of caution, the report added that lower wages were just one factor alongside other key costs which must also be considered.

Mercer consultant Steve Gross said: "When global companies compare China and India as places to outsource their operations, wage rates are only one factor in the equation.

"Organisations need to weigh up their operational costs, as well as factors such as proximity to markets, to determine the most cost-effective option."

According to the findings, human resource managers in China were found to earn 32,000 US dollars (27,400 euros) per year, compared with 15,100 dollars in India.

Project managers and financial analysts, meanwhile, took home and average of 23,400 and 13,200 dollars respectively in China, compared with 10,000 and 8,400 dollars for their Indian counterparts.

The study also stressed the differences in motivation between workers in the two nations.

"Employees in China are motivated by a sense of personal accomplishment, fair pay, and benefits while those in India tend to place more importance in confidence in senior management and organisational reputation," the report said.

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