Bangalore becoming too expensive for Startups ?
Startups have a tough time recruiting talent. The only real benefit that they have to offer an engineer is stocks. You would think that thats very good, and that should incentivize people enough to join startups, especially those who believe in what you are trying to do. (This is what I believed in when I joined a startup)
I guess it doesnt really work that well. At least in Bangalore where folks dont care as much about stocks as they care about salaries.
From Munjal Shah's blog - Riya (Like.com) have closed their Bangalore centre and are moving key folks back to the US center.
He has a very well written post about the rising salaries in Bangalore, which led them to this decision.
Its become common knowledge that freshers now start at 8-12L pa salaries in Bangalore.
Given how difficult it is to hire experienced people, its not difficult to imagine salaries 3-4X higher than that(Simplistically - someone who started at 6L, had a 25% raise every year after 8 years would be at 6*(1.25^8) = 35.7L) , and suddenly you are talking of figures which are around $90k pa - which is at par with what that person would be getting in the US as well. (what with the Dollar now trading at about 41Rs.)
Its going to become increasingly difficult for Startups based in Bangalore to survive for a reasonable amount of time even with a good amount of funding. As larger companies continue to increase their salary levels, to meet the talent shortage. As a result, we'll probably see fewer startups, and even fewer funded startups(because VCs would have burnt their hands).
And the people who work at the startup will work there for making the startup a success. So hopefully we'll see the success rate of startups in Bangalore going up (passionate employees ==> successful company )
The con is that, for a good engineer, taking the plunge of joining a startup will become even more difficult.
Disclaimer: These are my views alone, and do not have any reflection of the hiring policy that the startup I work for follows. For that matter, I dont even know about my companies recent hiring policies.
I guess it doesnt really work that well. At least in Bangalore where folks dont care as much about stocks as they care about salaries.
From Munjal Shah's blog - Riya (Like.com) have closed their Bangalore centre and are moving key folks back to the US center.
He has a very well written post about the rising salaries in Bangalore, which led them to this decision.
Its become common knowledge that freshers now start at 8-12L pa salaries in Bangalore.
Given how difficult it is to hire experienced people, its not difficult to imagine salaries 3-4X higher than that(Simplistically - someone who started at 6L, had a 25% raise every year after 8 years would be at 6*(1.25^8) = 35.7L) , and suddenly you are talking of figures which are around $90k pa - which is at par with what that person would be getting in the US as well. (what with the Dollar now trading at about 41Rs.)
Its going to become increasingly difficult for Startups based in Bangalore to survive for a reasonable amount of time even with a good amount of funding. As larger companies continue to increase their salary levels, to meet the talent shortage. As a result, we'll probably see fewer startups, and even fewer funded startups(because VCs would have burnt their hands).
And the people who work at the startup will work there for making the startup a success. So hopefully we'll see the success rate of startups in Bangalore going up (passionate employees ==> successful company )
The con is that, for a good engineer, taking the plunge of joining a startup will become even more difficult.
Disclaimer: These are my views alone, and do not have any reflection of the hiring policy that the startup I work for follows. For that matter, I dont even know about my companies recent hiring policies.