Bangalore becoming too expensive for Startups ?

[mekin]

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

Comments

[dilip]

Informative!

[dilip]

True, but given the fact that the quality of engineers passing out is diminishing, I don't think there's anything wrong for quality engineers in demanding more. Also, isn't there a high level of risk involved in joining a startup?

Very true... but whats the solution?

[shashwat_09675]

The last batch I remember that had reasonable placements was yours when even getting through Infy was considered big. Nowadays when you go to the colleges for a company presentation or to organise an event, nobody seem to be interested in anything but the pay package being offered. You are talking from the software perspective, just imagne the kind of beating the start-ups in the other fields of engg are facing. Software salaries are a bench mark for all placements in progress and in other fields those salaries are unimagionable for highly experienced people.

Re: Very true... but whats the solution?

[mekin]

I think the system will auto correct ... demand vs supply ...

But yes ... we are lucky to have been at the right place at the right time to reap benefits from this boom

Re: Very true... but whats the solution?

[derherr]

Nowadays when you go to the colleges for a company presentation or to organise an event, nobody seem to be interested in anything but the pay package being offered.

There is good reason for it. For a fresher, and I mean the average fresher, any work is good work and unless you really really know what you want to do and know the definition of "Good Work" and have a clear idea, any work you get is good.

Also, *MOST* work given to freshers in a mainstream company is very very average and the work by itself is no where close to being enough to tilt opinions. Also, there is the promise of good work to come with time and that promise holds with every single company that you join. There is *NO* company which says join us and your work will remain boring for ever ... there is always the promise of bigger things with time ...

So monetary compensation plays a very big role! and why not ... make hay when the sun shines ...

[anushsh]

Also I think the concept of long-term returns/profit is not very acceptable here. People ( Employees / VCs etc) want immediate outcomes. You might get some good funding if you are a Travel portal but not if you are trying to build something like this . I hope things get better.

[anomalizer]

It all started as pure cheap labour, when it got a little less cheaper, people started noticing that a lot of real cheap labour was sub par in absolute terms but the cost befenit was making up for the talent deficit. The talent deficit (from a percentage perspective) just keeps getting worse, the talent deficit <-> cost benefit gap at the lower levels keeps narrowing which eventually bubbles up to the upper level.

Call me pessimistic but I think that for a long time to come, as a country we will fail doing high end stuff due to the setup. We need some sort of a mass purging and revisit how we do things as an industry. The purging may not be direct, just the right corrections might result in many voulantary exits.

[umang]

25% year-over-year for 8 years is a bit too much, don't you think? Where did you get these numbers from?

This is something I've been meaning to blog about for a long time and your post just triggered it. Reply coming up on my blog soon! :)

[mekin]

Those numbers came from thin air.

But I dont think they are unrealistic.

You could arrive at similar figures like this:
6 * 1.5 * 1.48 * 1.3 * 1.3 * 1.2 * 1.15 * 1.12 * 1.1 = 38.2

Which definitely seem realistic & I know of folks who have achieved the 1st 4 years that ways .. the remaining 4 years are almost a given & if you add a job-hop thats a 20-40% increment out of turn

[bluesmoon]

25% yoy for 8 years or even 43% yoy for 5 years (which should get the same returns) isn't unrealistic. It happens, maybe not to everyone, but it isn't unheard of.

[umang]

http://umangjaipuria.blogspot.com/2007/04/re-bangalore-becoming-too-expensive-for.html