Bengaluru Startup Techies Are Least Paid In Entire World; City Gets Featured Among Top 20 Startup Cities
Bengaluru, often hailed as the Silicon Valley of India, has emerged as startup capital of India as well, there is a bad news: techies working in Bengaluru are among the lowest paid, not only in India but in the entire world.
These findings were revealed by a report on global startups by Startup Genome, which analyses the state of startup across 50+ cities globally.
In their annual report, Bengaluru has been featured among the top 20 startup cities, globally, and is the only city from India to get featured on this list. However, the salary of techies working in Bengaluru is a dampener. Besides, Bengaluru has also lost 5 positions, compared to last year.
The state of startup eco-system across these 20 biggest startup cities were measured against 5 parameters: performance, funding, market reach, talent, and startup experience.
Bengaluru Startup Ecosystem
Techies from Silicon Valley Are Paid The Most, Bengaluru The Least
The report discovered that techies from Silicon Valley in the US are paid the most, with $112,000 (Rs 72,80,000) being the average annual salaries. When it comes to Bengaluru, the annual salary of techies was projected at $8600 (Rs 5,59,000), which is in fact the lowest among all startup cities featured in the list. This means that a typical techie from Silicon Valley is paid 13 times that of a techie from Bengaluru!
In comparison, techies from our neighbour China are paid much more.
Startups from Beijing, which has featured on #4 in this list, pay their techies $25,000 (Rs 16,25,000) per year, and $22,000 (Rs 14,30,000) is the average salary of a techie working in a startup in Shanghai, another Chinese city. It is placed at #8
Tel Aviv & Singapore are the only other Asian cities to be listed on this coveted list, ranked at #6 and #12 respectively. Total 5 Asian cities are featured in the list.
A total of 7 cities from the US are included in the list, which are: Silicon Valley, New York, Boston, Los Angeles, Seattle, Austin, Chicago.
Rest 2 cities are from Canada and 6 from Europe.
Bengaluru Tops The Chart In Talent Index
Mainly due to the low cost of techies, Bengaluru has topped the charts, when it comes to Talent Index.
The report finds that Bengaluru has the youngest crowd of techies, compared to all startup cities, and ‘bang for the buck’ is the most crucial property of recruitment in Bengaluru. Startups can easily and cheaply hire techies, and run their businesses.
However, there are several challenges as well. Take for instance Access and Quality. Discovering talent in Bengaluru is the most difficult aspect for the startup, and the report also questions the quality of techies found in Bengaluru.
The report said, “In the Talent Index, Bangalore has challenges with Access and Quality –engineers haven’t been hired very quickly, experience is average and visa success is low – but the bang for the buck is still hard to beat, as Bangalore’s engineers are the most cost-efficient among the global top 20.”
You can find the complete report here.
I disagree with the salary comparison – it is not in the right context. Techies in Bangalore are paid well. In fact there are very few good techies in Bangalore (who are paid very well as they deserve), and bulk among remaining are about average or less. I have hired techies for my startup (https://reachingsoon.com, App Reaching Soon). We look much beyond just technical skills. It’s a long struggle to find someone who is sharp, dependable and can work without constant supervision – something that is more available in other startup ecosystems. Yet I have seen that companies like FlipKart and Ola have superinflated salaries even for the undeserving ones – worst way to spend VC money. What the average you have for Bangalore is right for here. Bangalore is not yet out of the INFY-TCS mindset of $xx/ hour with limited ownership, so the salaries paid are well justified.
all that begins well, ends well. startups fail due to high spending on show put-up than going by reality.
taazameatonline is also a small startup from hyderabad, doing business without much fanfare.
the delivery team at taazameatonline ensure home delivery in time at hyderabad within a stipulated budget. thus they is no need of angel funding.
my suggestions to startup is less manpower and more productivity
Incorrect inferences drawn from the report.
One needs to amount for Cost of Living, 401k etc. One can live a decent life with 22000 dollars in India, while at same time it becomes really difficult to sustain in Silicon Valley at starting Salary of 90k as most of it is bloated with ESOPs and other perks.