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Story URL: http://www.silicon.com/research/specialreports/china/0,3800011742,39160546,00.htm

IT salaries on the up in the Far East
Not so Singapore now...

By Vivian Yeo

Published: Thursday 20 July 2006

Companies in the IT and telecoms (IT&T) sector across Asia, particularly China and Singapore, expect to offer higher remuneration this quarter, according to a new report from human resources agency Hudson.

Nearly 2,400 key employment decision makers in China, Hong Kong, Japan and Singapore were surveyed for the report, according to Hudson. Respondents hail from companies in six industry segments: IT&T; banking and professional services; consumer; healthcare and life sciences; manufacturing; and media, public relations and advertising.

The report, released on Tuesday, noted that 82 per cent of IT&T companies in Singapore anticipate salary increases during the third quarter of 2006. Of these, 44 per cent said they are expecting to hand out increases of five per cent or more.

Lynne Ng, general manager at recruitment agency Adecco, agreed salaries are climbing in Singapore's IT industry. Brisk hiring activities can also be expected and IT professionals are likely to be encouraged - by this environment - to change jobs, she added.

In China, five per cent of IT&T companies forecast a salary raise of more than 15 per cent, the highest among the six industry segments. About 57 per cent of those polled expect to hand out increments of between five per cent and 15 per cent, while another 18 per cent predict pay raises of under five per cent.

Salary sentiments, however, are not as positive in Hong Kong. Respondents forecast minimal or no pay increases, where 69 per cent said salaries will remain the same, while 31 per cent said pay raises will be less than five per cent.

On the bright side, the employment outlook in the IT&T sector remains buoyant for all China, Hong Kong and Singapore, noted Hudson.

The hiring trend for all job functions remains positive across the sector this quarter, according to Hudson. This is notably so in Hong Kong, where 62 per cent of respondents anticipate a headcount growth in the third quarter, compared to 38 per cent during the same period last year. The demand for new hires is expected to be particularly strong in "development and sales roles", Hudson added.

In Singapore, 54 per cent of IT&T companies plan to hire new staff, up from 49 per cent during the third quarter of 2005, while 57 per cent of Chinese IT&T companies also intend to increase headcount, a slight increase from the previous quarter. Although the hiring forecast for the IT&T industry in China is one of the lowest among the six sectors, the Hudson report noted that expansion in the other sectors will help drive demand for new IT projects.

In addition, the demand for IT specialists - regardless of industry sector - is strongest in Singapore at 21 per cent of the estimated increase in headcount. In the report, Hudson attributed this to "Singapore's rapid development as a regional hub for companies' IT operations".

In China and Hong Kong, three per cent and eight per cent, respectively, of the overall increase in new hires for the IT&T industry will go to IT professionals.

Companies in the banking and professional services industry indicated the highest level of hiring activity, and this industry is consistently ranked first or second in China, Hong Kong and Singapore, in terms of expected increase in headcount.

Vivian Yeo writes for ZDNet Asia