Offshore Work IT in India
Could you do offshore work in India and make money?
We published an article asking ‘Want an IT job in India’.
One of our regular and most respected commentators wrote that you would get paid peanuts.
However, as regards working in IT in India, it is worth looking at it in a different way.
If you flogged your house here and bought one in India you would be living in a palace.
IT Contracting in India
You night not earn a fortune there, around 8K a year, but that is 16 times the national average wage, compared to contractors earnings being 3 times the national average wage here.
One could live like a king on ones income – and pay rates are increasing by about 15% a year.
You wouldn’t be able to save much there that was meaningful in UK terms.
However, when it was time to come back home you would make your money by selling your house.
House Prices in India
It would be a double whammy.
Firstly house prices are rising more sharply there than here.
Then their currency is appreciating against ours because their economy is growing at a greater rate than ours.
If you had a house worth 250K that was rising at a rate of 20% a year then it would be worth 523K after 5 years.
As their country is growing at around 5% a year faster than ours let‘s assume that their currency would appreciate at around 5% a year against ours.
That would push the house price up 667K in our terms. That would mean you had made a profit of 417K in the 5 years.
Contractors Living in Palatial House
That wouldn‘t be too bad would it?
You would have had 5 years of earning a king‘s ransom in Indian terms and living in a palatial house and then coming back home with close to half a million quid.
Most contractors would not be worth that after 5 years contracting.
Offshore work in India might pay off financially.
Worth thinking about?