Wages for entry-level software writers have gone up by nearly 50 percent in India since 2000 and those for project managers have more than doubled as companies ride the outsourcing boom, BusinessWeek reported.

Companies have to offer higher wages and handsome perks to attract talent as the outsourcing sector grew by 35 percent last year. An increasing number of American and European multinationals are outsourcing a bulk of their work to Indian companies because of the cost and labor advantages.

BusinessWeek said companies such as Wipro Ltd. have to go beyond offering just a good salary and benefits to attract and retail talent. “We have to offer a virtual valet service for them,” Sudip Banerjee, president of enterprise solutions at Wipro, was quoted as saying. From finding a home to school admission, Indian companies are offering everything to new talented employees.

According to figures attributed to Nasscom, India’s software industry association, annual wages for entry-level software writers have gone up from $4,082 in 2000 to $6,628 in 2004. Wages for project managers have gone up from $13,385 in 2000 to $31,131 last year.

The exponential growth in the outsourcing sector is already creating a talent crunch in the country. The industry employs one million people in India. The number is expected to double by 2008. The magazine said the crunch is serious enough for companies to do everything they can to retain talent. Apart from offering employees leisure and entertainment time out, companies also have to offer cash bonuses.