Silicon India reports that India has the highest increase in salary for 2010 in the Asia Pacific region. It was 6.6% in 2009 and now it increased to 10.6%. These kind of hikes are unheard of in the USA where 4-5% are considered good hikes and the normal range is 2-3%. And I don’t think many people got any hike at all in 2009 (except maybe those got a promotion). In fact many people might have got a salary reduction or maybe lost their job.

When reading the comments to the Silicon India article, it becomes clear that people are not satisfied with the 10% hike. I am getting the feeling that salaries in India will increase to a level where the competitive advantage in terms of cost will be lost and the outsourcing might move on to greener pastures.