Curious about BPO pricing in India? This brief article by India-based The Economic Times, titled, “Are Indian BPOs fleecing customers?” says that business process outsourcing rates vary from $9 to $15 per hour for “similar activities.”
One service provider, who provides services to Barclay Bank, suggests in the article that “They typically start by saying it costs them $18,000 per employee, before agreeing to a cost of around $25,000-$30,000 per employee.” The service provider says that translates to a savings (vs. US employees) of around 40% — but could be “far higher — as much as $50,000 per employee.”
The same article quotes an unnamed CFO at a BPO as saying that the average US rate is about $26 per hour (translating to about $52,000 in annual salary) and the average rate in India ranges from $10 to $14 per hour.
The US payout looks high to me — particularly if you’re talking about wages in places other than the coasts. Sounds like a case where the service providers are making the salary differential more dramatic than reality suggests in order to enhance the potential savings.
You can read the article here: