Mumbai turns into latest employment hotspot

Salaries have risen by up to 50% as banks compete for top talent to run back-office operations and carry out offshore research and analysis.

The chief operating officer at one European bank, which employs 30 people in equities in Mumbai, said: "The best talent with PhDs can now command a salary of between €10,000 ($12,000) and €12,000, compared with €6,000 a year ago."

Mark Kobayashi-Hillary, an independent outsourcing analyst, said salaries were up 30% over the year, with back-office operations staff being paid between 2,000 (€3,000) and 3,000 a year and those with more qualifications earning up to three times that amount.

This is backed by figures from Nasscom, the Indian outsourcing agency. Its latest survey shows that graduates with more than two years' experience were earning on average 230,000 rupees (€4,000) last year - up 25% on the year before.

Chris Gentle, director of research at Deloitte, the consultancy, said: "Demand is outstripping supply, especially in the financial services sector and particular locations, such as Mumbai and Bangalore, are showing signs of overheating."

The number of financial institutions with offshore operations rose by 38% last year and jobs within such divisions grew fivefold, according to a recent survey by Deloitte.