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Difference between offshore and Onsite salary

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There are many companies, which send their employees to work overseas, and it is in the client’s country.  It is called on-site job.  There is a huge difference between the salary paid in on-site jobs and in offshore jobs.  When the same project is offshored, it often happens in the country, where the company or the service providers is based.

difference-between-offshore-and-onsite-salary

 

For example, many outsourcing companies in India offer peanuts when it comes to paying salaries, but when the same companies send you on-site, they pay comparatively much better.  TCS is a good example of this.  The salaries offered by TCS in India are below the market standards, but when they send you on-site in the US, they pay you around US$4000-US$5000.

The case is different, when product companies send you on-site.  For example, SAP Labs offers just €30, per day, if they send you to a European country like Germany.  Similarly, i2 Technologies pays you around $50, in on-site destination.  Now, many people would be interested to know if it is better to work with a services company or a product company.

Normally, you can’t generalize when it comes to on-site salaries, as it varies from company to company.  For example, Tata Consultancy Services offers $60,000 per annum in the United States and the similar amount for an assistant software engineer is 1800 pounds per month, in the UK.  When you are sent on-site, you are not provided with the basic salary back home in India.  In bigger cities, for example, New Jersey, San Francisco, Los Angeles, Miami, and Silicon Valley in the US, the salaries are exceptionally good.  At other places, the salary is much less.

Also know the Difference in Salary and Wages

You continue to draw on-site salary, as long as you are there in that country.  Apart from the Indian salary, on-site salary is composed of accommodation and on-site allowances.  So, in the bigger cities of US, the on-site salary is usually much higher than the salary offered in smaller cities.

How much can you save in an on-site job?

Many people claim that they save up to one lakh rupees per month while working on-site.  It might be partially true, but it is often very difficult to save that much amount, because certain areas and cities such as San Francisco Bay Area, New York, New Jersey, Boston and California are pretty expensive.  You can end up spending around US$80 per day, which is the minimum expenditure there, as it covers just the cost of living.  Taxation is another area, which should be taken care of.

How much tax do I have to pay?

There is a treaty between the US and India to avoid double taxation on Indian workers in the US.  But, it is applicable only if you are on-site for more than one year and have to file an income tax return in the US.  If your period of stay in the US is less than one year, you would be exposed to double taxation.  But if it is more than one year, you just have to pay the US income tax.

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