Bangalore becoming too expensive for Startups - II

[mekin]

Quite a few folks suggested in response to my previous posts that 25% raise annually compounded was a bit too much to be real.
Fair enough (though as I responded to Umang - there are similar routes to get there).

The jobs & companies that I was talking of are mostly in the Web space. I do know of multiple people with 2 yrs experience at 12L+ levels

Comments

[anomalizer]

Do let me know of these places. I'm interested ;-)

[mekin]

Ask bluesmoon :)
He can get you 4x more :)

Dude ... it happens at the place you are at ....

[mekin]

Bluesmoon - http://mekin.livejournal.com/42864.html?thread=414064

[oldpondfrog]

Some quick and dirty math suggests that at the below rates the avg Indian tech workers salary in 14 yrs will equal that of his US counterpart's in 10 yrs. Very impressive given that an equal dollar amount (atleast today) means an enormously larger purchasing power for the Indian.

India : $15k (~ Rs6 lac starting salary) @ 15% each year in 14 years
roughly equals
US: $70k (starting salary)@ 5% each year (the norm for a hike) in 10 years

Of course the time scale is too large for any of the numbers I chose to stay (even reasonably) static.

[mekin]

Good ... then our dear friends in the US can return here at the same salaries ... and hope to save more & live more lavishly than in the US ...
I think 4-6 years is what it'll take for you guys.

[dilip]

You can consider one more aspect:

* In my opinion, about 50% of the software engineers in Bangalore have taken a Home loan to book an apartment. The prices of apartment has increased a minimum of 75% since last 3 years or minimum of 100% since last 4.5 years. Even after discounting the interset rates, the profit is really admirable.

I do not know whether Indian Techies have taken any similar loans in US and the value has appreciated. If that is not the case in US, then for last 2 year atleast, highly talented Techies who have taken a home loan and working in high paying companies in India must have made more money than regular techies in US.

[anonymous]

did you factor in the quality of life, your salary will never get your
good roads or the US freeway system. Your salary cannot give you a
decent airport.

[dilip]

Your roads are nothing compared to the joy of living with your parents.

[anonymous]

I wouldn't want my children living with me when they are 40something

[mekin]

Their are a lot of pros & cons of both places:
Some of the pros about both places:
In the US -
Better infrastructure, Cleaner places, more law abiding citizens, a generally more safe living, lesser hassles to get things done - like a driving license.

In India -
Living with family & friends, convenience of a service structure - household maids & office boys. Food - very good food, and enough variety too.

[anonymous]

Do factor in inflation. 36L 8 years later is clearly not the same as 36L now. Likewise $100k salary now will not remain stagnant at $100k then.

Do factor in maturity of the IT industry in India. In the early years, the slaries will definitely grow at a high rate but as industry matures and as the cost arbtrage between india-US decreases, yoy salary increase will also decrease.

The interesting question however is at what percentage of US Salaries will Indian salries reach equilibrium (if at all). It is unlikely to ever be equal beacuse of other overheads such as communication etc.

Actually, i think indian salary levels have already reached a stage where the purchasing power of an Indian exceeds that of American counterpart :)