Pune catching up with Bangalore in IT wages
Date: Wednesday , April 02, 2008
Pune is no more a beta in term of IT wages. A consultancy firmís study states that Bangaloreís dominance in offering highest compensation to software product engineers is being challenged by Pune, where average wages have gone up by 15-20 percent for this category of employees since 2007. Perhaps this is due to the fact that employers in India are leading the Asia-Pacific job market in the fast growing services sector.
The management consultancy firm, Zinnov, in its report notes that IT wages in Pune are expected to rise by 15-20 percent in 2008 as well. The sudden rise in salaries is due to the demand for talent in the city, as many companies are setting up base here. According to an international HR consultancy firm, in terms of talent hunt India is followed by Singapore, Australia, New Zealand, and Hong Kong. Out of the 4,922 employers surveyed in India, 49 percent expected an increase in hiring activity in Q4, two percent anticipated a decrease, while 41 percent saw no change in hiring plans in the recent future.
On account of its head-start and as a premier IT destination, pay scales in Bangalore are 9, 12, and 15 percent higher than they are in Chennai, Pune, and the national capital region (NCR, Delhi) respectively for junior, middle level, and quality posts. Even for top positions such as technical architect, product manager, and engineering director, Bangalore based firms are able to offer higher wages than in the other three regions that have emerged as clusters for software product development.
The study, covering 40 representative software product firms in the four regions - Bangalore, Chennai, NCR, and Pune, forecasts that the average increment in 2008 will be 15 percent for top performers and 30 percent for laterals with rare skill sets who constitute 15-20 percent of the total employees in the segment.