[empyrean]

What you said would've been true in maybe 2002. However, the wages at these companies have been stagnant for the last two decades. They haven't even kept up with inflation. So no, $5k per annum isn't "market wages" for software developers in India. These are the lowest of the low. New grads in India often take these jobs as a last resort if they have absolutely no other option.

[nonamechicken]

This was something that shocked me. These companies are paying the same salary to new graduates as 12 years ago. Inflation in India was high during this period, especially the last few years. I think the reason is customers still want to pay $25-30 per hour. So these companies don't want to pay more. They can't ask more because customers will find some other country. Also, there are too many graduates they can take advantage of.

A teacher in a government school gets paid more than a IT worker these days, and they have guaranteed job till 55. Since IT job is primarily based on low wages, job opportunities become drastically less once they have 10+ years experience (please tell me I am wrong on this).

[nicoburns]

> customers still want to pay $25-30 per hour

Even $10/hour is lot more than $5k/year for someone working full time. It seems the middlemen are gobbling up a lot of that!

[weberc2]

If these students don't have better options, then surely these are market wages by definition, no?

[raincom]

These days, govt employees make more than entry level workers in WITCH companies. That's why many so-called engineering grads also apply for jobs like bank clerk, police constable, etc.

Around 2004, many south Indian governments provided free tuition fees for engineering. So, thousands of engineering colleges were opened just to grab the fees by admitting more students. Now, the new minimum for students is: Bachelor of Technology.

This is India, where 1.3 billion people live. Unemployment is extremely high. So, even 3 lack rupees ~ $4k per annum is better than not having a job. If you want to call it a market wage, that's fine. It is like $15 per hour in the bay area is market wage, just because people have some jobs.

Inflation in India more than doubled in the last 15 years. 15 years, the base salary was $7k per annum. Now the same is paying $4k. (In other words, 300,000 rupees was 2004 salary , even today it is 300,000 for freshers). Basically, WITCH shops want warm bodies for their billable hours.

[pm90]

You're basically encouraging the exploitation of a country's labor force because they happen to have a lot of workers and not many opportunities for them. So yeah, its market wages by definition, but it doesn't make the practice OK.