Salaries in Analytics
Analytics is a high growth field and salaries in analytics have been sky rocketing in the last few years. There is a strong demand for “data-savvy” professionals in the industry today. As per a recent McKinsey research report, the US alone faces a shortage of 140000 to 190000 people with “deep analytical skills” as well as a million and half data-savvy managers and analysts who can deal with big data.
India ranked 3rd in the study – in terms of number of people available with analytical skills – behind the US and China. Yet India has emerged as the global hub for analytics. This is because India has a steady supply of English-speaking analytical talent.
Salaries in analytic in India have sky rocketed in the last 5 to 8 years. In 2005, a company would hire a graduate or a post-graduate at an entry level position of analyst for about Rs 1.8 lacs per annum. In 2011, campus salaries for analytic roles have been reported at around Rs. 6 lacs going as high as Rs. 12 lacs for premium colleges.
A Senior business analyst with 3 to 5 years of experience would get anywhere between Rs. 8 to 12 lacs per annum. A Team leader or a lead analyst with 5 to 10 years of experience would be making between 10 to 14 lacs per annum.
As you can see, the salary growth in this field is fairly steep. This is because the demand for experienced professionals is high and growing fast.
By the time a person gets to the analytics manager role, they usually have close to 10 years of experience and would be commanding a salary in the range of Rs. 12 to 20 lacs per annum.
Campus recruitment in analytics
Often times, analytics companies recruit students in large numbers from various colleges. Initially the trend was to recruit from colleges like ISIs(Indian Statistical Institutes). However, now companies are increasingly going after MBA graduates. Colleges like Goa Institute of Management have become a hot bed for analytics recruitment.
HP’s global analytics team offered salaries of Rs 7.5 lacs for freshers and between 8 to 8.5 lacs for experienced resources. Infosys made a similar offer as well. JP Morgan Chase offered 8.5 lacs while companies like Accenture and e-clerx offered packages of Rs. 8 lacs.
Captive vs. Non-captive centres
Captive centres are those that are dedicated to a particular company. For example, those working for HSBC analytics or Dell analytics will work exclusively on the HSBC or Dell business. On the other hand, an analyst working in an analytics service company such as Genpact or Marketelligent is likely to work across multiple businesses and clients. The latter work tends to be looked upon as more rewarding since it is more varied in scope. To make up for this, captive centres usually offer slightly higher salaries than non-captives.
Salaries in analytics in Bangalore vs. Gurgaon vs. Chennai vs. Kolkata
Salaries across major cities like Bangalore, Gurgaon, Chennai and Kolkata are fairly consistent and differ largely due to cost of living differences. Kolkata has a lot of analytic talent and it is not an expensive city to live in. Hence salaries are a little lower here compared to other cities.
How will salaries in analytics be in the next 5 years?
The dependence of business on data savvy professionals is expected to continue to sky rocket in the coming years. There is a shift in demand from pure statistical talent to professionals who can apply analytics in the context of a business problem and thus a shift from statisticians and mathematicians to data savvy professionals who also understand the business.
- The starting salaries in analytics are expected to grow at 10 to 20% per annum at least for the next 5 years.
- Professionals in the analytics industry can expect annual pay hikes of about 15% every year.
- Promotions in analytics tend to be largely merit-driven.
- Average time to promotion is 18 to 24 months at the lower levels and 2 to 5 years as you move up the hierarchy.
I would love to hear from professionals in the field, what they feel about salaries in analytics.