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Offshoring by the Numbers

Results of our survey of 275 finance executives at a broad range of companies.

Hourly Wages
Although the hourly wages an Indian worker can earn for commonly outsourced job categories seem low, a software engineer making almost $20 an hour could hire a full-time housekeeper.

U.S. India
Telephone operator $13 Less than $1
Medical transcriptionist $13 $2
Payroll clerk $15 $2
Legal assistant/paralegal $18 $7
Data-entry clerk $20 $2
Accountant $23 $11
Financial researcher/analyst $34 $11
Software developer $60 $6
Software engineer $120 $18
Note: Numbers are rounded. Where ranges were given, the average is given above.
Sources: University of California, Berkeley; and McKinsey Global Institute

Workers of the World
Even as the U.S. population ages, the number of workers in India and China continues to grow rapidly. But both of those countries still face development hurdles.

United States India China
Total population 0.29 billion 1.07 billion 1.30 billion
Civilian labor force 147 million 470 million 744 million
Percent of population under age 25 35% 53% 41%
Number of college graduates per year 1.3 million 3.1 million 2.8 million
Number of computer-science graduates per year 53,000 75,000 50,000
As percentage of population 0.02% 0.007% 0.0004%
Cost of a cup of coffee at a gourmet coffee bar $1.68 $0.50 $1
Percent of country with electricity 100% 60% 98%
Percent of population living below the “poverty line”* 12% 25% 10%
Illiteracy rate 5% 35% 15%
*Definition of “poverty line” varies substantially by country.
Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics, U.S. DoE, The Economist, Economic Times of India, Software Outsourcing Research, CNBC, the National Center for Education Statistics, the International Energy Agency, and CFO research

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