Workforce management is an extreme sport in Hyderabad, India, a first-tier offshore hotspot where foreign multinationals compete with Indian companies for software engineers and managers. In the mad scramble to recruit and retain employees, annual salary adjustments have turned into quarterly raises. The average wage increase for 2006 will top 12 percent.
Labor cost savings for U.S.-based companies operating in India could shrink from 80 percent to 40 percent within a decade, according to Andy Goodman, executive vice president of human resources at Islandia, New York-based CA Inc., formerly Computer Associates International, which employs 1,100 workers in its Hyderabad software development center. "But even so, India will still represent a significant economic value," he says. "It is really a question of exploiting the global talent pool wherever it exists."
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