Tag Archive for 'india'

Why should Indian IT firms set up in Hungary?

Published
by
Steven Carlson
  on  November 18, 2004
  in  Current events
. 0 Comments

I read with interest that Indian outsourcers Satyam Computer Services are setting up a facility in Hungary. It’s also worth noting the company’s stock rose 4%, based largely on this news.

Hungary is good business for Satyam largely because local wages are still lower than in Western Europe. According to the Satyam piece a programmer’s average salary in Hungary is $10,500 compared to $24,500 in Ireland.

However, the piece goes on to say the comparable wages in India are $7,500, so I can’t help but ask what are the advantages for an Indian outsourcer setting up in Hungary?

Is India running out of programmers?

Is there a tax advantage I’m not aware of?
Does geography make such a difference?

The cost advantages are clear for multinationals that set up programming here (this includes Ericsson, Siemons, Nokia, Motorola, EDS …) but I can’t see the argument for an Indian company. Any suggestions out there?