Bangalore’s techies get expensive

Bangalore’s techies get expensive
Yet Companies Are Willing To Pay Higher Salary For Quality
The Times of India

Bangalore: Acquiring a Bangalorebased software engineer is not a wallet-friendly exercise anymore. Especially so for Tier II and III software firms. A mid-level techie costs a company anything between Rs 8-10 lakh per annum, and if the trend continues many of these companies will have trouble hanging onto the bright talent from Bangalore.

Today, salaries of engineers in Bangalore are 15-20% higher compared with that in other IT-savvy cities like Chennai or Hyderabad. Individual salaries have been rising by an average 20% every year, over the last three years. At this rate, and pretty soon, only the best will be able to lure a Bangalore engineer. For V Shankaram, director of
Bangalore-based IT firm Intellinet

Technologies, rising salaries have been a source of concern. “It is tough to attract bright Bangalore engineers these days, especially if you do not pay top dollar,’’ says Shankaram.

But companies still want to place their bet on engineers here for the simple fact that they are reassured of quality. As Ghanshyam Das, managing director of Nasdaq (Apac) puts it: “If you want quality, you pay for it.”

“The beauty about Bangalore is that companies are willing to pay that extra money for they are assured about the talent they hire. Sitting here, a company can hire the brightest minds from across India,’’ says Gautam Sinha, CEO of TVA Infotech.

“Looking at the last 2-3 years, I have got an average hike of 30%. Some of my friends have got an even better hike,’’ says an employee in Symphony Services who has put in about 8 years in the profession.

“The salary inflation in Bangalore is perhaps 10 times higher than in many other cities. But besides a high base cost, factors like quality and immediate availability matter a lot,’’ says Nigel Clifford, CEO of Symbian, a UK-based telecom software major.

Some feel that giving higher responsibilities is one way to attract the talent pool. Says Shirish Mehta, Intellinet’s VP (engineering): “The trick is to attract them with more responsibilities and leadership roles. It will be difficult for Tier II and III firms to charm them with good salaries alone.’’

PAYLOAD
* Bangalore home to nearly 3 lakh software engineers.
* Of them, nearly 75% have experience of 6 or more years.
* Salaries in Bangalore 15-20% higher compared with other IT cities.
* Individual salaries rising by an average 20% every year.