Whats the reason for the drastic rise in Indian salaries?

Microsoft / Eng
vVjL41

Go to company page Microsoft Eng

vVjL41
Apr 2, 2021 50 Comments

hearing 1Cr is common these days
what caused companies to pay this high?
US has only tightened visa restrictions narrowing down chances to escape from India...what then triggered such a development?

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TOP 50 Comments
  • Amazon / Eng
    kobra🐍

    Go to company page Amazon Eng

    kobra🐍
    I believe a lot of talent is returning to India from US, and decided that living like a king In India is better then waiting for greencard for 50 years and slugging in the valley.

    IMO After US, India is better option then Canada uf you making > 5 mil Rs. ,due to poop TC, High COL, and shitty weather in Canada
    Apr 2, 2021 2
    • Microsoft / Eng
      vVjL41

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      vVjL41
      OP
      absolutely...canada doesnt look like worth the pain when home treats you right
      Apr 2, 2021
    • Amazon
      RealBeejos

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      RealBeejos
      Unless you mean they bring the job with them, shouldn't it drive the TC down? Also, I believe the increase in wanting to return is a direct result of higher salary and not the other way around. A bit of chicken and egg there.
      Apr 2, 2021
  • Amazon
    Khashi

    Go to company page Amazon

    PRE
    Amazon, Microsoft
    Khashi
    AFAIK, this was started by Amazon 3 years back beating Google/MSFT compensation. When Jeff Bezos did 5B$ investment, the Amazon head in India got special exception to pay 90th percentile salary than local market (normally Amazon gives 75th percentile). Amazon open positions in India was also crazy high which flooded the market with high paying positions. Eventually, Google/Microsoft catched up. When Uber and Twitter enter Indian market, they wanted to beat the market and gave even higher salary.

    Overall, I am happy that this reduced the brain-drain from India. Many of these high salary individuals don't see a point to move to US because of less savings and immigration headaques. Also, this gave an opportunity for many to move back to India.

    The rise of Indian executives in top US companies and startups are also giving rise to companies moving many of the job positions in India.
    Apr 3, 2021 1
    • Coupang
      LeadVP

      Go to company page Coupang

      LeadVP
      I would say this is not 3 yrs old but ut started around 2014-15 timeframe as many startups got funded and started paying top $. All FK, Uber, FB, AMZN, MSFT, GooG pay upwards of 25lakh for freshers so for Principal and Dir/VP 1Cr is understandable now a days. Its still lower than 150K where even a fresh grad will make 150K in West Coast easily and Sr can go over 250-300K. In that sense its still cheaper to pay 1Cr in India and get the top talent whereas even avg and low to mid SDEs will already be making upwards of 200K. Mind you 1Cr is still top of the band majority will still be around 20-50lakh! So India is still cheap.
      Apr 3, 2021
  • Amazon
    bbbbvuujj

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    bbbbvuujj
    maybe good quality engineers?
    Apr 2, 2021 1
    • Microsoft / Eng
      vVjL41

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      vVjL41
      OP
      you mean high demand for good engineers? ie, supply of engineers is low in comparison to the number of companies looking for those engineers? really?
      Apr 2, 2021
  • IBM / R&D
    LovDayKaTC

    Go to company page IBM R&D

    PRE
    Xerox
    LovDayKaTC
    1 cr salary in India will get you a top experienced candidate. TAnd that is still less than an entry level engineer in the valley (150K USD or so).
    Apr 2, 2021 3
    • IBM / R&D
      LovDayKaTC

      Go to company page IBM R&D

      PRE
      Xerox
      LovDayKaTC
      Because it takes time for candidates to gain experience. IT boom started in late 90s/ early 2000s. Initially, top talent would move out of India. With time, there is enough candidate pool now and internet economy has also grown in past decade. So, a combination of multiple factors.
      Apr 2, 2021
    • IBM Dude if I live on 1 Lakh per month I'll still save almost ~60 Lakhs in India after tax. Not in the US though. Atleast take into account purchasing power and cost of living
      Apr 3, 2021
  • Amazon / Eng
    huv

    Go to company page Amazon Eng

    huv
    1. More talent availability in India. Earlier only tier 1 colgs used to dish out good software engineers owning to good education. Now due to online resources, any tier colg chap can write equally good code or learn same concepts. Good Talent available now is lot more here.
    2. Due to 1 and cost saving, US cos. started setting up offices here. But the top talent is still limited to cover all these jobs. So salary πŸš€πŸš€πŸš€.
    3. Huge VC funding also played a role in upping salaries for startups so mncs had to match. I think Flipkart was a paymaster back in 2012-2015. And amazon Google had to increase their salaries. Now flipkart can't compete with others sadly
    Apr 2, 2021 3
    • Amazon / Eng
      huv

      Go to company page Amazon Eng

      huv
      I assume MSFT feels it can still hire good talent in US with whatever it pays as per market. All the big companies have teams who research the market, salary and their own offer data and come up with numbers
      Apr 2, 2021
    • Cisco
      Hyper_ben

      Go to company page Cisco

      PRE
      Microsoft
      Hyper_ben
      no, they dont even pay in india well! It is frustrating to neg with them.
      Apr 2, 2021