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15 Lacs PA to 20 Lacs PA = $24k - $32k per year

Interesting, is that before or after taxes?

That's quite a lot than the range you would have to pay for a Software Engineer in Mexico, which goes between $18K and $27K (gross).

I guess that's why more and more USA companies choose to outsource to Mexico, to take advantage of the closer time-zones and somewhat more familiar culture.

That would be before taxes. The reason why good Indian developers command a 20-25 lakh INR per annum in salary is in part due to the income tax. Indian income tax mandate swallows upto 30% of income from people who have an income exceeding 10 lakh INR pa. (=> effectively, it's only around 70-80% of whatever salary they get would be available to them).

I did not know that salaries in Mexico are in the range of 18K-27K USD pa; that sounds like a better deal for US based companies.

BTW, one should note that the major Indian outsourcing service providers (a.k.a the big three - TCS, Infy, Wipro) are already in Mexico.

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