Salary of BPO Employees is More in India, Says Report

According to the Nasscom-Hewitt report, more than 80% of the organizations across the IT and ITeS sectors have reported a prevalence of short-term incentive plans and about 40% have reported prevalence of long-term incentive plans with stock options being the most favored.
IT professionals got an average salary increase of 16%, BPO professionals received an 18% hike in 2005. In terms of wage bills, IT companies spent more on Total Cost-to-Company (TCC) in contrast to BPO companies in 2005, according to the Nasscom-Hewitt Total Rewards Study.

The IT sector witnessed a 10% movement in compensation across levels on TCC. BPO companies witnessed less increase in wage bills at seven percent in terms of TCC. Both IT and BPO sectors are seeing a movement toward a higher cash-to-benefit ratio. The IT firms in 2005 revealed a 78: 22 cash orientation, as compared to the BPO firms at 76: 24.