New Delhi, NFAPost: According to the sixth edition of the annual study report by Analytics India Magazine and Jigsaw Academy titled “Analytics India Salary Study 2020- By AIM and Jigsaw Academy,” the salaries in the mid-senior and senior-level have registered the highest median figure over the last 4 years.
The sturdy, now in its sixth edition and is the only annual study in India, gives a ringside view of salary trends and provides a comprehensive view of the changing landscape of analytics salaries.
This extensive report in collaboration with Jigsaw Academy is focussed at the distribution of average salaries across several categories including, years of experience, metropolitan regions, industries, education levels, gender, tools, and skills.
The study revealed that the past year has been an effective growth year for the Data Science and Analytics domain, with an increase in the median salary in the analytics function and a corresponding increase in salaries and the proportion of professionals in the upper experience cadre.
In terms of salary distribution across various brackets, there has been a shift to an established analytics market that commands higher salaries with 45.4% of all the analytics professionals fall under the higher income level.
In terms of salary trends across cities, Mumbai emerges as the destination for highest salaries for analytics employees at Rs 15.6 Lakhs per annum as median salary, followed by Bengaluru at Rs 14.7 Lakhs.
The study has also revealed that the median salary of Rs 14.4 Lakhs, professionals commanded a salary 14.3% greater than that received the previous year, and the highest median salary commanded since this salary study began in 2015.
Commenting on the report, Analytics India Magazine Founder & CEO Bhasker Gupta said the Data Science and Analytics domain has been experiencing significant growth as organisations have been adopting these techniques extensively to draw meaningful insights.
“Witnessing the hikes in the salaries of analytics professionals across the organisations, the demand for analytics professionals will continue to grow in the coming years,” said Analytics India Magazine Founder & CEO Bhasker Gupta.
Jigsaw Academy Co-Founder and CEO Gaurav Vohra said Data science continues to be an attractive career option for fresh graduates as well as experienced professionals. We are witnessing a very high demand for data engineers and cloud engineers, along with Machine Learning experts and AI specialists.
“As always, the demand for analytics skills exists in various industries like information technology, telecom, manufacturing, finance and insurance, and retail to name but a few. We have also observed that this demand in the market outstrips the supply in all sectors. This clearly shows that the role of someone with the data science and analytics skill sets is very high and will stay evergreen – if it slows down in one industry, the slack is quickly picked up by numerous others,” said Jigsaw Academy Co-Founder and CEO Gaurav Vohra.
- As of March 2020, the median salary of analytics professionals in India is INR 14.4 Lakhs – a 14.3% growth over the 2019 median salary of Rs. 12.6 Lakhs.
- While the salaries in the entry-level and medium experience level positions have remained almost the same as last year, the salaries in the mid-senior (6-10 years’ experience), and senior-level (10-12, and 12+ years’ experience) have registered the highest median figure over the last 4 years.
- The proportion of the analytics professionals remains the highest in the entry and middle-income levels (0-6 Lakhs – 33.3% and 6-10 Lakhs – 21.7%). However, these 2 segments have seen a significant drop in proportion over previous years.
- The percentage or proportion of employees in the higher- income levels (greater than 10 Lakhs) has substantially increased and constitutes approximately 45% of the total employee base in 2020
SALARY TRENDS ACROSS CITIES
Once again, Mumbai emerges as the destination for highest salaries for analytics employees at 15.6 Lakhs per annum as median salary, followed by Bengaluru at 14.7 Lakhs.
- The sector-location niche of Mumbai and the higher cost of living in the city has pushed the salaries of analytics personnel to the highest level across cities.
- A majority of Domestic Banks (ICICI and HDFC Bank), Consulting Firms, MNC Banks, and Investment firms (Nomura), have their head offices, financial and investment centres, and analytics operations based out of Mumbai –moreover, many Domestic conglomerates, such as Reliance, Tata Group, and Aditya Birla have their head offices and analytics centres based in Mumbai as well. This pushes the median salary of Mumbai to the highest level.
- The IT and analytics hub of Bengaluru has the second-highest median salary, of analytics professionals, at Rs. 14.7 Lakhs.
- Most of the analytics startups have their respective offices in Bengaluru. Apart from this, most of the other industry startups, such as Ola and PhonePe have their management and analytics centres based out of Bengaluru. These factors, coupled with the presence of large analytics operations for some MNC captive centres, such as Shell, MNC IT firms, such as Accenture, Oracle, Dell, and Capgemini, and Domestic IT firms, such as TCS, Infosys, and Wipro, pushes the median salary of Bengaluru to the second position.
- Similarly, the BPO/KPO hub of Delhi NCR registers the median salaries for analytics personnel at the 3 rd place at 13.5 Lakhs
- Pune and Hyderabad are placed 4th and 5th in terms of salaries at 12.2 Lakhs and 12.1 Lakhs respectively.
- The salaries of analytics professionals in Chennai is the lowest at INR 11.6 Lakhs.
SALARIES BY COMPANY TYPES
In this section, the types of companies have been classified on the basis of the core operations (captive, domestic firms, IT service providers) of the organizations.
Captive centres are Global In- house Centres (GICs) for large MNCs that have operations in India. Analytics and reporting are provided in-house by the captive centres for the companies’ core global businesses. Hence, analytics play an essential role across the GICs. Typically, the captive Centres fall within investment banking, such as BlackRock, broad-based financial institutions, such as JP Morgan and American Express, and pharma majors, such as Merck and Pfizer – such firms have a portfolio of high margin products and services targeted at global clients, markets, and customers. Hence, the salaries of analytics personnel within these Captive Centres are at the highest band of all median salaries at 18.7 Lakhs, a 22.4% increase over the salaries offered in 2019. This is the biggest increase year-on-year for all the company types.
Consulting firms have large analytics operations – they provide analytics services either as a standalone function or as part of the entire consulting package. Within the entire package, they leverage analytics to draw inferences and recommendations for their clients. These two services are provided for both global and domestic clients from their India operation centres. Consulting firms thus offer the second-highest salaries at 16.2 Lakhs, a 13.5% increase over salaries offered in 2019.
Many domestic Indian firms, like Reliance Industries, Godrej, and Aditya Birla, have set-up exclusive analytics units for their enterprise-wide services. As these consumer-focused firms are inundated with data on hundreds of millions of Indian consumers and are pushing to compete with each other and with MNCs, they require real-time and actionable analytics and insights at almost every stage of the value chain. The Domestic firms thus offered the third-highest median salaries of 15.1 Lakhs, a 15.8% increase over the salaries offered last year.
Indian startups that included such companies as Ola, Swiggy, Pepperfry, and Paytm, offered the smallest hike over last year. This is representative of this sector, considering many of the startups registered significant losses (Ola, OYO, and Paytm) despite impressive top-line and customer growth. Indian startups offered median salaries of 14.4 Lakhs, the lowest increase of 11.2% over median salaries in 2019.
Boutique analytics firms provide analytics-as-a-service and include such firms as Ugam Solutions and LatentView Analytics to name a few. The boutique analytics firms offered 13 Lakhs in median salaries – a 12.6% increase of median salaries over last year.
Finally, large IT service providers that have legacy analytics functions, which offer services based on the offshore model to global clients, offer the lowest median salaries in analytics. Many of these firms have long-standing clients and have not experienced much churn in their client portfolio and correspondingly have not significantly transformed their respective analytics’ functions. As a result, the median salaries offered are at the lowest band at 12.1 Lakhs, an 11.6% increase over last year.
SALARIES BY EDUCATION QUALIFICATIONS
The salary trends by education level are similar to last year – with engineering undergraduates from top-tier institutes drawing the maximum median salary of 24.3 Lakhs in their analytics roles. They are followed by management post-graduates from top-tier institutes drawing salaries of 23.7 Lakhs. On the flip side, an employee with an engineering undergraduate degree from the wider pool of institutions earns a salary of 13.3 Lakhs.
Moreover, an employee from the wider pool of MBA institutions can command a salary of 14.6 Lakhs. Hence, an engineering degree from a top-tier, premier institute, can earn employees 80% more than those employees from the wider engineering undergraduate pool. Similarly, a degree from a premier management institute can earn the employees 63% higher than the employees that have an MBA from the wider management graduate pool.
While a master’s degree is significant, considering that 62% of the workforce are master’s graduates, an MBA degree from a top-tier institute would enable employees to command a higher salary. Non-MBA postgraduates command a salary of 12.8 Lakhs, while non-engineering undergraduates command a salary of 12.4 Lakhs. Finally, PhDs earn the third-highest salary at 22.6 Lakhs and account for a very small proportion of 1.2% of the workforce.
The demand for analytics professionals continued to grow through 2019-20, and this is revealed by the percentage salary hikes professionals have received in the past year. With a median salary of INR 14.4 Lakhs, professionals commanded a salary 14.3% greater than that received the previous year, and the highest median salary commanded since this salary study began in 2015.
While there has been a growing demand for experienced professionals, greater numbers of professionals are entering this field, thus moderating the salary increase – this is exhibited by the greatest proportion of professionals in the 3-6 Lakhs salary band, who constitute 24% of the entire employee pool.
Nonetheless, the proportion of employees in the higher salary levels is significantly high this year – 45.4% of the professionals draw salaries greater than 10 Lakhs. Mumbai, as it did for the Cybersecurity salaries and Women in AI salaries, tops the salary commanded by analytics professionals at 15.6 Lakhs. This is understandable because of the number of financial institutions, including the captive centres of MNC financial firms, and the domestic firms headquartered in Mumbai. In terms of sector, companies in the Telecom sector offer analytics professionals the highest median salary at 19.8 Lakhs, while in terms of company type, the Captives, mostly comprised of financial and pharma companies’ in-house analytics centres, offer their employees the highest median salary at 18.7 Lakhs.
In conclusion, fresh graduates considering a career in IT, and experienced IT or domain professionals considering a career shift should consider a career in the analytics domain and upskilling to an analytics capability respectively. Moreover, such professionals could look at the Telecom sector or Captive focused companies for a suitable role. There is ample opportunity for growth, in terms of learning, capability, and compensation in the analytics function – analytics professionals commanded the highest salary across all IT functions.