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.”