I met a CEO of a small company (less than 10 developers) recently, a month back or so. (I am on the lookout for a job in 3D graphics of OpenGL sort for myself, right now.) He mentioned a formula that he said he had heard from the placement agencies. The formulae, applicable for the average case, are: -- for junior level developers, annual salary in Rs. lacs = no. of years of experience + 2. -- for senior level developers, annual salary in Rs. lacs = no. of years of experience X 2. BTW, 1 lac (aka lakh) means 100,000. I don't believe the formula. For the average case of senior people, the formula (or its multiplicative version) seems to overestimate somewhat. If this is your first time to outsource, esp. to India, then, unless you have someone local from Durgapur (or Assam) who has been exposed to international software development cycles--say by himself immigrating from Assam to Bangalore (or USA)--you would be better off taking this venture in an experimental spirit, rather than as a full-fledged production setup. I feel sure you don't mean the second anyways, but just thought of reminding. That way, to the extent I know, there is almost no difference in pay-scale in IT industries by region in India. Not the one that would matter at this stage of your project in any significant way! Now, something to all other CPians.... ----- In other replies to Harald's queries, I do see some sentiment against outsourcing to India. Not that I have a great regard for the Indian IT industry, but I want to raise a couple of questions--may be at the expense, once again, of my own career, but in the interest of truth anyways. 1. When was the last time you (clients, typically from the Western countries) outsourced any truly core development of any software product to India? Don't just keep mum and resolve to get even with me later on. State it. When was the last time? The point is simple: If you give out second-rate work to be done, be prepared to get a second-rate treatment to that work--whether the work is given out to another location within the USA/UK/Whatever other country, or out of country, to India. 2. I have repeatedly had the problem of people abroad understanding things the first time but feigning as if they didn't, and creating unnecessary issues. (I have only dealt with Americans from India.) There have been tactics like prolonging decisions by artificially means. For instance, creating long threads of emails. Or, pushing an MBA forth during *technical* discussions, thereby guarunteeing th