Hyderabad: In the backdrop of global tech giants setting up research centres, Hyderabad maintaining its top status on the ease of doing business (EoDB) index and a general wave of business optimism surrounding the city, the latest Belong report has found that the city trumps Bengaluru when it comes to employee retention.
Belong carried a head-on-head comparison between Hyderabad and Bengaluru for employee retention and found that companies in Hyderabad see 40-60 per cent less employee attrition compared to Bengaluru.
For the purpose of this study, Belong analysed last two years data of large size IT companies such as IBM, Tech Mahindra, TCS, Wells Fargo, Infosys, Amazon, Microsoft, among others. When compared to the national average, Hyderabad again fared better with 30 per cent-60 per cent lesser attrition rate.
“Hyderabad enjoys being one of the world’s fastest growing tech cities. Access to rich talent pool, affordable and reliable infrastructure, and a pro-business government outlook collectively make it an irresistible investment destination for both tech startups and giants alike. If people comprise 60-65 per cent of a tech company’s operation cost, attracting best engineers to do the job becomes as important as the ability to retain them for longer tenures. And Hyderabad seems to be scoring well on this front by having lower attrition compared to other Indian cities,” says Phani Pattamatta, executive director of TiE Hyderabad.
Belong also compared the average salaries of employees in Hyderabad and Bengaluru for emerging skills. It found that the average salaries for hard-to-hire roles like Data Scientists and UI/UX Designers was 10-20 per cent lesser in Hyderabad compared to Bengaluru.
In the last few years, factors such as lower cost of living, ease of doing business, cheaper real estate, better roads and infrastructure, and lesser traffic compared to other the metros have attracted the who’s who of the tech giants to set up their offices in Hyderabad. This includes Google, Amazon, Uber and Facebook to name a few.
Belong said in a statement, “And in the wake of Telangana’s formation in 2014 and KT Rama Rao taking over as the IT Minister, Hyderabad has been making the right noises when it comes to the IT ecosystem. It’s also home to India’s largest incubation centre – T-Hub.”
“For many years now we have always heard that Hyderabad is touted to be India’s next Silicon Valley. But now for the first time we have data to prove that it is a more viable option for tech companies because of higher retention and comparatively lower salaries owing to lower cost of living,” said Rishabh Kaul, co-founder, Belong.