Indian salaries rocket as UK firms poach talent
A full-blown salary war has erupted in India in response to increased local and international competition for talent, resulting in pay increases of more than 50 per cent at most top Indian law firms in the last year.
A full-blown salary war has erupted in India in response to increased local and international competition for talent, resulting in pay increases of more than 50 per cent at most top Indian law firms in the last year.
Indian law school graduates can now earn around £15,000 per annum at firms such as FoxMandal Little, while Luthra & Luthra has hiked its base salary for the third time in a year by a total of nearly 80 per cent.
Abhishek Saxena, a partner at Trilegal, with which Allen & Overy (A&O) has a non-exclusive referral arrangement, said: “It’s because there are competing forces for a short supply of good-quality lawyers.
“Good-quality lawyers are not only being hired by law firms in India, but various international firms have started hiring lawyers straight from law school or from Indian firms.”
In recent years A&O, Clifford Chance, Herbert Smith, Linklaters, Olswang and SJ Berwin have recruited many Indian law school students and laterals. Clifford Chance is understood to have received more than 100 applications and has taken on more than 10 trainees from India in the latest round.
One UK firm partner said: “I feel a bit sorry for [Indian firms]. It’s a bit like it was with us when the Americans first came to London.”
Readers' comments (7)
Anonymous | 7-Apr-2008 12:23 pm
Enter reality
Indian law firms have operated with unrealistic high margins by underpaying lawyers and charging premium rates from foreign clients over the last several years. The salary correction is only the first sign of reform. Very soon Indian law firms will have to start competing with foreign law firms on work-life balance, personal development, and other frills hitherto underheard of in the Indian market. Understandingly there is severe opposition from the larger Indian law firms since they have benefited most in the last few years. The younger and smaller firms are relatively relaxed about foreign competition.
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Anonymous | 7-Apr-2008 3:51 pm
huge talent
There is a sea of good, talented indian lawyers waiting for opportunities to get rewarded for. So far, legal practice in india is primarily not of talent but of good public relations. Talented hard working lawyers are only working as associates or juniors.
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Anonymous | 8-Apr-2008 10:09 am
Turn the tables
I am happy the big Indian law firms have happily embraced the fact that talent needs to be paid. They have also turned the tables around. Given that partnership prospects are next to impossible in international law firms and it is not so competitive (yet) in India, it is now for us to wait and see how the international law firms will respond by showing their commitment to India.
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Gordon B | 8-Apr-2008 12:02 pm
What Competence?
If India wants to have a competent legal market and attract investors, first it should alleviate its poverty problem, eradicate rat infestation in the streets, prohibit child labour, improve health care facilities for its people and provide a clean water supply. Good lawyers also means lawyers should be able to draft opinion without grammatical errors, able to handle transaction deals with good communication skills and excellent judgment call.
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Ash B | 8-Apr-2008 5:02 pm
Re: What competence
Gordon B's comment on this article is clearly laden with prejudice (born of what frustration, we do not know). His suggested link between rat infested streets, a lack of clean drinking water and a decent health care service on the one hand, and the quality of Indian lawyers on the other hand displays a complete lack of any inkling of an intellect. Gordon B also states "Good lawyers also means lawyers should be able to draft opinion without grammatical errors, able to handle transaction deals with good communication skills and excellent judgment call", a quote itself replete with grammatical errors. In this response, Gordon B has clearly displayed HIS lack of judgment call, and shown to the legal community HIS grammatical shortcomings. Perhaps it's time for Gordon B to turn his attention to these infestations in his competence, instead of pontificating on India's rat infested streets.
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JJV | 9-Apr-2008 4:35 pm
Re Gordon B and What Competence
Gordon B - what a ridiculous, prejudiced comment - what are you doing responding to this article in the first place? Clearly you are better off airing your frustrations on other more suitable publications. Since when has the state of a country's health system and poverty had any bearing on the competece of the legal market? I hardly think that the UK's rise in gun crime, teenage murders, teenage pregnancy and binge drinking culture in anyway reflects the competence of the UK's legal market. And anyone would be ridiculed for suggesting otherwise. Each country has its own problems (please don't be so blighted as to think that the UK does not have serious social and economic issues) but this has no bearing on the legal market that is being discussed in this article. Your ignorance and prejudice is astounding. You will also find that lawyers in India are highly educated and very likely speak better English that most people in the UK. Not only are Indian lawyers well versed on legal issues both from inside and outside of their jurisdiction they generally don't suffer from the arrogance and stupidity you have displayed.
I think you will find that the legal market is booming in India and that Indian firms are so far the main beneficiary of this growth. I would not worry yourself about good communication skills and excellent judgment - since you have neither, it is clear you would not recognise such qualities in any event.
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Sushant | 28-May-2008 6:36 pm
Gordon B
I would like to state that if you have seen the level of Indian Education, it is much more stringent than the U.K. or U.S. systems.
Moreover, educated Indians speak very good English compared to most Europeans or Americans due to the absence of slang. The frivolous reasons for not having good lawyers according to you do not at all hold water. What connections do rats have with lawyers? Your statement would be true only for the falling standard of living in India which would be true to a limit. But India is a much safer place compared to either U.K. or the U.S and mugging is virtually unknown in metropolitan cities like Mumbai.
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