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Hiring techies in US Silicon Valley costs 12 times more than that in Bengaluru

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The 2017 Global Startup Ecosystem Report has listed four Asian countries in the top 20 startup ecosystems in the world. In 2015, the continent was represented by and Bengaluru only. But this year, Beijing and Shanghai was added to the list.

now ranks 12th (10th in 2015) and Bengaluruis at number 20 (previously 15).

For Bengaluru, the scenario is a bit different because the main challenges it is facing are in the fields of talent and the startup ecosystem itself. On the talent front, while Bengaluru has an immense amount of talent available, most of it is not industry-ready, which causes to spend more time training employees. But startups may not always have the time and the capacity to train talent.

The other challenge for Bengaluru is funding and high valuations of Since it’s been taking investors longer to recover their investments, fewer Bengaluru in the city are getting funded. In fact, only eight out of 192 fintech startups were able to secure funding in 2015.

The government is also helping in terms of policy. The government of India has approved 100 percent foreign direct investments (FDI), which led to an increase of over 30 percent in FDIs last year. This will allow from other countries to provide funding and own up to 100 percent equity stakes in in India.

 

Until early last year, foreign could own only 49 percent equity in Indian This not only creates funding opportunities for Indian but also allows for strong mentorship, which can help startups operate and scale up in an affordable and strategic manner. Another benefit of such a move will be that Indian could get access or exposure to international markets.

Affordable talent has always been a key factor for Bengalurus since it costs 12 times less to hire an engineer here than it does in USA’s Silicon Valley.  This allows  to hire engineering and operations staff cost-effectively.

Source: TechInAsia

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