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The State of Data Engineering in India - 2024

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0% found this document useful (0 votes)
252 views46 pages

The State of Data Engineering in India - 2024

Jh

Uploaded by

Nikhil Tiwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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RESEARCH

April 2024

The State of
Data Engineering
in India: 2024
As organizations increasingly harness the
power of data, this report provides essential
insights into the impact of data engineers on
industry trends and workforce dynamics in
India.
The State of Data Engineering in India: 2024
Executive Summary...(1/2)

Data engineers are primarily responsible for the collection,


storage and analysis of the data. They are responsible for
converting the data that can be used by the data scientists,
for the analysis of the dataset. They are also responsible for
data collection, data transformation, data storage, data
integration, and automation of the pipeline of the data.

With the advent of digital technologies, a significantly large


volume of data is being generated. The data is generated
through several sources including sensors, transactions,
social media, and others. Data engineers play a vital role in
managing the data and ensuring its quality and integrity.
Data Engineers are the professionals who create pipelines to
transform this data into formats that data scientists can read
and use to further analyze the datasets. This data pipeline
entails collecting data from various sources and storing it in
a single warehouse, where it will be represented uniformly.

The first section in the report provides an industry overview


of the data engineers in India. It highlights several aspects
such as salaries and number of the data engineers across
several sectors.

AIM RESEARCH 3
Executive Summary...(2/2)

The next section provides an overview of job openings for


data engineers, and also provides a detailed description of
the information on the number of job openings by sector, by
salary bracket, in different sectors, and based on the size of
the company.

Furthermore, it also highlights the job openings by work


models, and by company size. The report also covers
information on the number of data engineers on the basis of
geography, roles, skills required for data engineers and on
the basis of the work models.

Moreover, the report also provides a detailed analysis on the


attrition rates for data engineers across India. It also projects
a picture on the attrition rates of data engineers.
Furthermore, the report highlights the key skills of data
engineers in the present market. The report concludes with
the distribution of data engineers by different roles in India.

Generative AI is
revolutionizing data
engineering by significantly
accelerating the transformation
of raw data into actionable
insights.
STATE OF DATA ENGINEERING IN INDIA 4
Contents

Key Highlights 7

Data Engineering Market in India 8

Open Jobs for Data Engineers 19

Median Annual Salaries of Data Engineers 23

Attrition Rate of Data Engineers 33

Roles & Skills in Data Engineering in India 40

AIM RESEARCH 5
Key Highlights

The market of data engineering in India is anticipated to


expand at a CAGR of around 33.8% in the next five years
growing from USD 29.1 billion in 2023 to USD 124.7
billion in 2028.

Senior Talent Demand: The proportion of data


engineers with 6+ years of experience increased
significantly across various sectors, rising from 27% in
2023 to 38% in 2024. This suggests a growing demand
for senior-level talent in the field.
Salary Growth: There has been a notable increase in the
number of data engineers earning between ₹6-10 lakhs,
which escalated from 24% in 2023 to 32.4% in 2024,
marking an increase of approximately 8.4%.
Job Availability: While precise figures are challenging to
pin down, there were 10,593 job openings for data
engineers across all industries found on online job
portals.
Attrition Rates: The overall attrition rate in companies
decreased from 18% in 2023 to around 14% in 2024,
indicating improved retention strategies and possibly
better job satisfaction or market conditions.
Sector-Specific Employment: In the non-IT sectors, the
BFSI sector accounted for 49.3% of data engineer
employment in 2024, highlighting a significant
concentration of data engineering roles in this industry.

AIM RESEARCH 7
Exploring the Growth Trajectory of the Data
Engineering Market

Projected Market Size of the Data Engineering Industry (2022-2028)

140.0

120.0

100.0
Market Size ($B)

80.0

60.0

40.0

20.0

0.0
2022 2023 2024 2025 2026 2027 2028

According to the AIM Research report from last year, the


data engineering market was expected to surge at a
Compound Annual Growth Rate (CAGR) of 33.8% over the
next five years, increasing from USD 29.1 billion in 2023 to
an estimated USD 93.2 billion by 2027.

Despite this optimistic forecast, the actual CAGR for 2023 in


India has been adjusted to 33.8%, reflecting a 10.8%
decrease compared to the previous projection. This
adjustment highlights the dynamic nature of market growth,
influenced by various economic and sector-specific factors.

STATE OF DATA ENGINEERING IN INDIA 8


Data, often referred to as the new oil of the 21st century,
continues to be a critical asset for companies across diverse
sectors. Leveraging data-driven insights allows businesses
to deeply understand the nuances of their data sets, thereby
enhancing decision-making processes and improving overall
business outcomes. This section of the report delves into
the market scenarios of data engineering in India, covering
aspects such as the distribution of data engineers by
sectors, salary brackets, years of experience, and company
types.

As we look forward, the market size of the data engineering


industry in 2023 stands at USD 29.1 billion, with projections
showing a significant increase to USD 124.7 billion by 2028.
This forecast underscores the growing importance and
investment in data engineering capabilities across industries,
as businesses seek to harness the full potential of data for
competitive advantage.

The data engineering


market is poised to breach
the $100 billion mark by
2028, signaling a robust
expansion in the field.

AIM RESEARCH 9
Shifting Landscapes: Distribution of Data
Engineers Across Sectors (Non IT)

Percentage Distribution of Data Engineers by Sector (2023-2024)

Internet/E-commerce 1% Internet/E-commerce 1%
Travel and Hospitality 1% Travel and Hospitality 2%
Power 5% Power 2%
EntertaInment 6% EntertaInment 4%
Pharmaceutical and Lifesciences 6% Pharmaceutical and
Lifesciences 4%
Retail 14%
Retail 10%

Telecom 15% Telecom 28%

BFSI 52% BFSI 49%

2023 2024

The distribution of data engineers has seen significant shifts


in 2024. Notably, the BFSI sector, which traditionally
employed a large number of data engineers, recorded a
decrease in their proportion from 52% in 2023 to 49.3% in
2024, a decline of 2.7%.

This reduction is primarily attributed to increased automation


and the adoption of advanced data analytics solutions,
which have reduced the demand for additional data
engineers in the sector.

STATE OF DATA ENGINEERING IN INDIA 10


Conversely, the telecom sector has experienced a
remarkable growth in the demand for data engineers, with
their numbers increasing from 15% to 27.8% between 2023
and 2024. This growth is largely due to the rollout of 5G
technology, the need for enhanced network optimization,
and the necessity to manage the expanding volume of
consumer data and Internet of Things (IoT) devices,
highlighting the sector's burgeoning reliance on
sophisticated data engineering capabilities.

Other sectors like pharmaceuticals and life sciences, as well


as retail, have seen a reduction in the number of data
engineers. The pharmaceutical and life sciences sectors
now focus more on research and development, coupled with
strict data privacy regulations, which led to a decrease in
data engineer roles from 6% to 4.5%. The retail sector
similarly decreased from 14% to 9.7%, finding efficiencies
through optimized data processes and automation, reducing
the need for data engineering personnel.

These shifts reflect broader trends in data engineering


employment, driven by technological advances and
changing business needs across various industries.

The telecom sector witnessed a


substantial 12.5% increase in
data engineer employment due
to advancements in 5G and a
surge in data analytics needs.

AIM RESEARCH 11
Evolving Compensation Trends for Data
Engineers

Yearly Salary Distribution Changes for Data Engineers (2023-2024)

50-75 Lakhs 1% 50-75 Lakhs .5%


25-50 Lakhs 9% 25-50 Lakhs 5.1%

15-25 Lakhs 16% 15-25 Lakhs 15.3%

10-15 Lakhs 13% 10-15 Lakhs 26.4%

6-10 Lakhs 24% 6-10 Lakhs 32.4%

3-6 Lakhs 32% 3-6 Lakhs 17.3%

0-3 Lakhs 5% 0-3 Lakhs 2.7%


2023 2024

The salary landscape for data engineers in 2024 reveals


significant trends in compensation, indicating shifts in the
roles and value within the industry. Notably, there has been
a substantial decrease in data engineers earning between 3-
6 lakhs, dropping from 32% in 2023 to 17.3% in 2024.

This trend points to a decline in lower-tier positions within


the field, influenced by factors such as increased
automation, outsourcing of lower-skilled tasks, and shifts in
industry demands.

STATE OF DATA ENGINEERING IN INDIA 12


Conversely, the data engineering profession is witnessing a
robust increase in salary brackets that indicate enhanced
skill levels and responsibilities. The proportion of data
engineers earning between 6-10 lakhs rose by 8.4% to
32.4%, and those earning between 10-15 lakhs increased by
13.4% to 26.4% in 2024. These adjustments reflect the
critical nature of mid-level professionals who are capable of
multitasking, delivering efficient outcomes, and providing
stability with their expertise.

Companies are increasingly recognizing the importance of


these mid-level roles by offering attractive salaries to attract
and retain talent, emphasizing their pivotal role in leading
projects, managing teams, and implementing data-driven
solutions. This strategic salary structuring aims to bolster the
backbone of skilled professionals who are essential to the
operational success and innovation capacity of their
organizations.

The adjustments in salary distribution underscore a broader


industry evolution towards valuing higher technical skills and
leadership capabilities among data engineers, aligning
compensation strategies with the growing complexities and
demands of the digital economy.

Data engineers in the 6-10 and


10-15 lakh salary brackets saw
significant increases of 8.4% and
13.4% respectively, reflecting the
high value of their multitasking
abilities and expertise.
AIM RESEARCH 13
Shifting Dynamics in Data Engineering: A
Closer Look at Experience Levels
Changes in the Distribution of Data Engineers by Years of Experience
(2023-2024)
12+ Years 6% 12+ Years 5%

10-12 Years 11% 10-12 Years 5%

6-10 Years 21% 6-10 Years 18%

3-6 Years 44%


3-6 Years 37%

0-3 Years 29%


0-3 Years 25%

2023 2024

The distribution of data engineers by years of experience in


2024 highlights notable shifts within the profession, pointing
to an evolving landscape where mid-level and senior roles
are becoming increasingly pivotal.

There has been a significant increase in data engineers with


6-10 years of experience, which rose by 3% from 18% in
2023 to 21% in 2024. This trend underscores a growing
cadre of mid-level professionals who are crucial for the
progressive maturity of the data engineering field.

STATE OF DATA ENGINEERING IN INDIA 14


Advancements in technology, particularly in data
engineering and analytics, have spurred the adoption of
automation, enhancing efficiency in data-related tasks. This
technological shift has reduced the demand for entry-level
roles that primarily involve basic data processing and
management, resulting in a decrease in the percentage of
engineers with less experience.

Conversely, the experience spectrum at the higher end is


also expanding. The percentage of data engineers with 10-
12 years of experience more than doubled, surging from 5%
in 2023 to 11% in 2024. Additionally, those with over 12 years
of experience saw a slight increase from 5% to 6%. These
shifts suggest a significant presence of experienced
professionals who are increasingly in demand for senior
roles such as data architects, team leads, and senior
managers. Such positions require not only extensive
experience but also strong leadership capabilities and a
strategic mindset essential for overseeing major data
initiatives and driving organizational growth.

The evolving experience distribution among data engineers


indicates a field that is not only expanding in terms of
technology and capability but also deepening with a growing
reliance on experienced professionals who can lead the way
in a data-driven future.

AIM RESEARCH 15
The proportion of data
engineers with 10-12 years
of experience has
impressively more than
doubled, from 5% in 2023
to 11% in 2024, signaling a
robust increase in seasoned
professionals.

STATE OF DATA ENGINEERING IN INDIA 15


Evolving Employment Trends for Data
Engineers Across Company Types
Percentage Share of Data Engineers by Company Type (2023-2024)

2023 2024

IT/ITes Firms

Consultancy Firms
Company Types

Captives/GCC firms

Boutique/ Analytics Firms

Domestic Consultancy Firms

Startups

0.0% 5.0% 10.0% 15.0%

The landscape of data engineering employment across


different company types in India has witnessed significant
shifts from 2023 to 2024, reflecting broader trends in
technology adoption and business strategy. In the IT/ITes
sector, which traditionally held a substantial share of data
engineering roles, there was a noticeable decline in the
proportion of data engineers, dropping from 17.0% to 13.7%.

This reduction is attributed to the optimization of workforce


structures, increased automation of routine tasks, and shifts
in business priorities that have lessened the demand for
traditional data engineering roles. Additionally, the growing
integration of AI and machine learning technologies is
transforming the need for conventional data engineering
skills in this sector.

AIM RESEARCH 17
Conversely, consultancy firms have experienced a notable
increase in data engineering roles, with their share rising
from 4.0% in 2023 to 6.1% in 2024. This growth is driven by
an escalating demand for data analytics and consulting
services across various industries. Consultancy firms are
increasingly relying on data analytics to deliver strategic
insights, propel business transformations, and assist clients
in managing complex data challenges, thus underscoring the
critical role of data engineers in these processes.

Furthermore, Captives/GCC and Boutique/Analytics firms


have also seen significant increases in the share of data
engineers, with Captives/GCC firms almost quadrupling their
share from 2.0% in 2023 to 7.4% in 2024, and
Boutique/Analytics firms tripling theirs from 2.0% to 6.8%.

These trends highlight the growing importance of


specialized data engineering and advanced analytics
expertise within business decision-making frameworks. As
global companies continue to embrace digital
transformations and data-driven strategies, the role of data
engineers is expanding, proving pivotal in driving innovation
and securing competitive advantages across diverse sectors
and organizational types.

This shift in distribution underscores a dynamic and evolving


field where data engineers are increasingly valued for their
ability to adapt and thrive in various industry environments.

Captives/GCC and Boutique/Analytics


firms saw remarkable growth in data
engineer employment, jumping from 2%
in 2023 to 7.4% and 6.8% respectively in
2024.
STATE OF DATA ENGINEERING IN INDIA 18
Sector-Specific Growth in Data Engineering
Job Openings in India
Distribution of Open Jobs for Data Engineers by Sector (2023-2024)

2023 2024

BFSI

Pharma/Healthcare

Internet/E-commerce
Sectors

Telecom

Retail

Media/Entertainment

Industrial/Manufacturing

Travel and Hospitality

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

While capturing the exact total number of job openings


across India remains challenging, a significant portion, 88%,
of data engineering positions are advertised by IT/ITeS
companies, reflecting the sector's sustained demand for
these roles. From 2023 to 2024, there has been an
approximate 7% increase in the number of job openings for
data engineers across the country, indicating a healthy
growth trajectory in this field.

In the BFSI sector, although there was a notable decline from


50% in 2023 to 33.0% in 2024, it still maintains a substantial
share of data engineering job vacancies.

AIM RESEARCH 19
This sector's heavy dependence on data analytics for
functions such as risk management, customer insights,
regulatory compliance, and ongoing digital transformations
continues to drive a high demand for data engineers. The
expectation is that as BFSI firms further integrate new
technologies, the demand for skilled data engineers will
continue to grow, making it an attractive field for data
science professionals.

The pharmaceutical and healthcare sector saw a significant


increase in demand for data engineers, with job openings
rising from 15% in 2023 to 20.4% in 2024. The sector's
growing focus on utilizing data analytics for enhancing
clinical trials, pharmaceutical research, and overall
healthcare management has spurred this demand. As the
healthcare industry places a greater emphasis on data-
driven decision-making, the need for skilled data engineers
to develop and manage robust analytics and data
infrastructures has become more pronounced.

STATE OF DATA ENGINEERING IN INDIA 20


Similarly, the internet/e-commerce sector also experienced
an increase in data engineering job openings, going from
15% to 18.4%. This growth is fueled by the expansion of the
internet and e-commerce industries in India, driven by an
increase in online transactions and the rising need for
personalized customer experiences. E-commerce
companies are investing heavily in data analytics,
necessitating a greater number of data engineers to handle,
analyze, and extract valuable insights from large volumes of
customer data.

These trends across various sectors not only highlight the


critical role of data engineers in supporting key industry
operations but also point to diverse opportunities for career
growth within this dynamic and evolving field.

The BFSI sector, despite a


decline, continues to lead
with 33.0% of data
engineering job openings,
underscoring its ongoing
reliance on data analytics for
critical operations
AIM RESEARCH 21
RESEARCH

Compensations in
Data Engineering
in India: 2024
The landscape of compensation for data
engineers in India saw a modest yet
significant shift in 2024, particularly within
the mid-salary range.
Salary Trends for Data Engineers in India: A
Focus on Mid-Level Professionals
Annual Median Salary Distribution for Data Engineers by Bracket
(2023-2024)

2023 2024

0-3
Salary Brackets in LPA

3-6

6-10

10-15

15-25

25-50

50-75

75-100

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

The landscape of compensation for data engineers in India


saw a modest yet significant shift in 2024, particularly within
the mid-salary range. Specifically, job openings for data
engineers earning between 6-10 lakhs per annum saw an
increase of 1.3%, rising from 31.0% in 2023 to 32.3% in
2024.

This increase reflects a sustained demand for mid-level data


engineering professionals, who are crucial for managing
increasingly complex data tasks that drive business growth
and innovation.

AIM RESEARCH 23
Companies are recognizing the critical role that experienced
data engineers play in leveraging data analytics effectively.
To attract and retain such talent, higher salaries are being
offered, particularly in this salary bracket, which typically
includes professionals capable of overseeing significant
aspects of data management and analysis.

Moreover, the overall job market for data engineers also


shows varied trends across different salary brackets. While
there is a growth in mid-range salaries, there is a noticeable
decrease in the higher salary brackets, with the 10-15 lakh
bracket seeing a drop from 31.0% to 26.6%, and the 15-25
lakh bracket decreasing from 18.0% to 15.5%. Conversely,
there is an emergence of roles in the highest salary brackets
(50-75 lakhs and 75-100 lakhs), albeit starting from a very
low base, indicating a budding market for top-tier data
engineering skills.

These salary trends not only highlight the evolving needs


and valuations within the data engineering job market but
also point to broader shifts in how businesses value and
invest in data capabilities, emphasizing the growing
importance of data-driven decision-making in today’s digital
economy.

A notable increase in job openings


within the 6-10 lakh salary
bracket to 32.3% in 2024
underscores the escalating demand
for mid-level data engineering
expertise.
STATE OF DATA ENGINEERING IN INDIA 24
Adjusting Compensation: A Closer Look at
Data Engineers' Salaries by Experience
Changes in the Annual Median Salary of Data Engineers by Years of
Experience (2023-2024)

2023 2024

0-3 Years
Experience Brackets

3-6 Years

6-10 Years

10-12 Years

12+ Years

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Median Salary in Lakhs Per Annum

The salary landscape for data engineers in 2024 reveals


nuanced adjustments that align with broader economic
conditions, particularly the anticipated global recession.

Notably, data engineers with 6-10 years of experience have


experienced a 4.9% decrease in their median salary,
dropping from 21.1 lakhs in 2023 to 16.21 lakhs in 2024.
This downturn reflects a cautious approach by companies
across various sectors, as they recalibrate salary structures
in response to economic uncertainty.

AIM RESEARCH 25
The salary trend across different experience levels presents
a complex picture. While entry-level data engineers (0-3
years) saw an increase in median salary from 6.2 lakhs to
8.6 lakhs, suggesting a growing valuation of fresh talent,
more seasoned professionals faced reductions. Engineers
with 10-12 years of experience saw their median salary
decrease from 26.6 lakhs to 18.7 lakhs, and those with over
12 years of experience saw a reduction from 32.2 lakhs to
17.2 lakhs.

These adjustments indicate that while the demand for data


engineering skills remains high, particularly at the entry-
level, companies are becoming more conservative with their
compensation offerings for more experienced professionals
amid economic pressures. This realignment suggests a shift
in how companies are valuing experience in relation to cost
efficiency and economic forecasts.

This data not only provides insights into the immediate


financial realities facing data engineers but also signals
potential shifts in career trajectories and compensation
expectations within the field, as the industry navigates
through economic uncertainties.

Significant salary adjustments


observed, particularly a 4.9%
decrease for data engineers with 6-
10 years of experience, reflecting
economic concerns.

STATE OF DATA ENGINEERING IN INDIA 26


Sector-Wise Salary Trends for Data Engineers
Amid Economic Shifts
Year-Over-Year Comparison of Median Salaries for Data Engineers
by Sector (2023-2024)

2023 2024

IT/ITes

Telecom

Travel and Tourism


Sectors

Industrial and Manufacturing

Pharma and Lifesciences

BFSI

Internet

Media

Retail/CPG
0.0 5.0 10.0 15.0 20.0 25.0 30.0

Median Salary in Lakhs Per Annum

The median salaries for data engineers across different


sectors in 2024 highlight the influence of economic
fluctuations and consumer behavior on compensation
trends. Particularly affected are the Retail and Consumer
Packaged Goods (CPG) industries, which faced substantial
salary reductions due to their high sensitivity to economic
downturns and shifts in consumer spending. In 2024, the
median salary in the Retail/CPG sector decreased
dramatically from 30.4 lakhs to 13.5 lakhs.

AIM RESEARCH 27
The Media sector also experienced a significant decrease,
with median salaries dropping from 27.4 lakhs in 2023 to
9.6 lakhs in 2024, underlining the sector's vulnerability to
budget cuts during economic uncertainty. On the other
hand, sectors like Telecom and Travel and Tourism showed
more stability, with the Telecom sector's median salary
slightly decreasing from 14.1 lakhs to 14.0 lakhs and Travel
and Tourism seeing a small dip from 16.5 lakhs to 16.0
lakhs.

Sectors traditionally considered more resilient, such as


IT/ITes and Industrial and Manufacturing, have shown
varying trends. IT/ITes saw an increase in median salary
from 10.2 lakhs to 13.9 lakhs, likely due to ongoing digital
transformations and the sector's critical role in supporting
various industries through technological advancements.
Conversely, the Industrial and Manufacturing sector
maintained a steady median salary at 12.0 lakhs, reflecting
stability in this sector.

These sector-specific salary trends provide insights into


how different industries adjust compensation in response to
economic pressures and changing market dynamics. They
also reflect the broader economic conditions' impact on the
data engineering profession, indicating strategic shifts that
may influence future career decisions and sector
attractiveness for data engineers.

Retail/CPG and Media sectors


saw notable salary reductions,
reflecting the impact of economic
sensitivities on compensation.
STATE OF DATA ENGINEERING IN INDIA 28
Median Salary Trends for Data Engineers
Across Company Types
Comparative Analysis of Annual Median Salaries for Data Engineers
by Company Type (2023-2024)

2023 2024

IT/ITes Firms
Company Types

Domestic Firms

Pure Play Analytics Firms

Consultancy

Startups

Captives

0.0 5.0 10.0 15.0 20.0 25.0

Median Salary in Lakhs Per Annum

The median salary landscape for data engineers across


various company types in 2024 has shown significant shifts,
particularly in captive firms which experienced the most
dramatic decrease. The median salary in captives declined
sharply from 25.6 lakhs in 2023 to 10.6 lakhs in 2024.

This substantial drop is attributed to a range of factors


including restructuring initiatives, cost optimization efforts,
and changes in compensation strategies aimed at
responding to market competitiveness, business
performance, and broader industry trends.

AIM RESEARCH 29
Such a sharp decline reflects the challenging balancing act
that captive firms face in managing costs while still needing
to attract and retain skilled data engineers critical for driving
long-term organizational success. In contrast, other types of
companies displayed different trends:
Domestic Firms: Saw an increase in median salary from
11.6 lakhs to 16.1 lakhs, indicating robust growth and
potentially greater investment in data engineering
capabilities.
Pure Play Analytics Firms: Also experienced a positive
shift, with salaries rising from 15.4 lakhs to 18.4 lakhs,
reflecting the high demand for specialized analytics
expertise.
Consultancy Firms: Witnessed a decrease from 15.9
lakhs to 10.2 lakhs, possibly due to similar pressures as
those faced by captives, including the need for cost
management amid changing market demands.
Startups: Showed a decrease from 18.1 lakhs to 12.9
lakhs, which may highlight fluctuating investment levels
and the unpredictable nature of startup funding
environments.

These trends provide a comprehensive overview of how


median salaries for data engineers are evolving across
different company types, shedding light on the economic
and strategic factors influencing compensation decisions.
For data engineers and industry stakeholders,
understanding these dynamics is crucial for navigating
career paths and compensation negotiations in the changing
landscape of the tech industry.

STATE OF DATA ENGINEERING IN INDIA 30


Adjusting Data Engineer Salaries Across Major
Indian Cities
Shifts in Annual Median Salaries for Data Engineers by City (2023-
2024)

2023 2024

20.0
Annual Median Salary
in Lakhs per Annum

15.0

10.0

5.0

0.0
Chennai Hyderabad Pune Delhi NCR Mumbai Bengaluru

The landscape of data engineering salaries in major Indian


cities has undergone notable changes, particularly in
established tech hubs like Bengaluru and Mumbai. Despite
their status as prime destinations for tech talent, these cities
have seen significant declines in median salaries for data
engineers, with Bengaluru dropping from 17.3 lakhs to 12.9
lakhs per annum and Mumbai from 17.0 lakhs to 10.7 lakhs
per annum.

These reductions can be attributed to a combination of


economic fluctuations, shifts in industry demand, changes in
employer hiring strategies, and adjustments in compensation
budgets.

AIM RESEARCH 31
Moreover, the COVID-19 pandemic has notably influenced
these trends by accelerating the adoption of remote work.
This shift has allowed companies to tap into a broader talent
pool beyond traditional geographical limits, enabling them to
hire data engineers from regions with lower living costs,
which in turn affects salary structures even in tech-centric
cities like Pune, where salaries decreased from 15.9 lakhs to
12.5 lakhs.

Here’s a detailed look at the median salaries for data


engineers across major cities:
Chennai: 12.6 lakhs (down from 13.4 lakhs)
Hyderabad: 13.1 lakhs (down from 13.6 lakhs)
Pune: 12.5 lakhs (down from 15.9 lakhs)
Delhi NCR: 12.8 lakhs (down from 16.7 lakhs)
Mumbai: 10.7 lakhs (down from 17.0 lakhs)
Bengaluru: 12.9 lakhs (down from 17.3 lakhs)

These adjustments in salaries reflect a broader recalibration


within the tech industry, as employers and employees alike
adapt to new norms of work and compensation in response
to evolving market conditions and the increased flexibility of
remote work arrangements.

Significant salary reductions in


Bengaluru and Mumbai, dropping
from 17.3 lakhs to 12.9 lakhs and
from 17.0 lakhs to 10.7 lakhs
respectively, reflect the changing
dynamics in Data Engineering
compensation.
STATE OF DATA ENGINEERING IN INDIA 32
RESEARCH

Attrition Rates in
Data Engineering
in India: 2024
The attrition rates among data engineers in
2024, compared to 2023, show a significant
decline across all experience levels,
suggesting an enhancement in job
satisfaction, career development
opportunities, and employer-employee
relationships.
Declining Attrition Rates Among Data
Engineers: A Sign of Maturing Retention
Strategies or changing market?
Yearly Attrition Rate Changes for Data Engineers by Experience Level
(2023-2024)

2023 2024

35.0%

30.0%
Attrition Rate (%)

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
1-2 Years 3-5 Years 6-10 Years More than 10 Years

The attrition rates among data engineers in 2024, compared


to 2023, show a significant decline across all experience
levels, suggesting an enhancement in job satisfaction, career
development opportunities, and employer-employee
relationships. Particularly notable is the decrease in turnover
among entry-level data engineers (1-2 years of experience),
where attrition plummeted from 35.0% to 20.4%.

This marked improvement could be a reflection of better


retention strategies implemented by companies to nurture
and retain emerging talent in the face of an industry that has
rapidly expanded in recent years.

STATE OF DATA ENGINEERING IN INDIA 34


For data engineers with more experience, the trends also
point towards an evolving focus on retention. The attrition
rate for those with 3-5 years of experience dropped from
28.0% to 18.6%, and for those with 6-10 years, it decreased
from 18.0% to 12.6%. These decreases suggest that
companies are becoming increasingly successful at
implementing measures to reward, recognize, and provide
growth opportunities to mid-level and senior employees,
thereby creating a more conducive work environment that
fosters long-term loyalty.

The most experienced group, those with more than 10 years


of experience, also saw a decline in attrition rates from
11.0% to 7.1%, underscoring the high value and
compensation typically associated with senior data
engineers who can manage complex data architectures.

Here is a detailed breakdown of the attrition rates by years


of experience:
1-2 Years: 20.4% (down from 35.0%)
3-5 Years: 18.6% (down from 28.0%)
6-10 Years: 12.6% (down from 18.0%)
More than 10 Years: 7.1% (down from 11.0%)

These shifts in attrition rates reflect a broader industry trend


towards strengthening retention strategies. By recognizing
and addressing the specific needs of data engineers at
different stages of their careers, companies are not only
enhancing their workforce stability but are also positioning
themselves as desirable employers in the competitive field
of data engineering.

AIM RESEARCH 35
Sectoral Shifts in Attrition Rates for Data
Engineers

Attrition Rate Changes for Data Engineers by Sector (2023-2024)

2023 2024

Telecom

Industrial/Manufacturing

Retail/CPG
Sectors

BFSI

Media/Entertainment

IT/Ites

Pharma/Healthcare

Internet/E-commerce

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%


Attrition Rate (%)

The attrition rates among data engineers across various


sectors in 2024 show significant improvements, particularly
in high-growth industries such as Internet and E-commerce
and IT/ITes. In the Internet and E-commerce sector, the
attrition rate declined sharply from 25.0% in 2023 to 18.66%
in 2024.

This substantial reduction is indicative of the sector's


intensified efforts to retain talent through measures such as
improving workplace culture, offering career advancement
opportunities, and providing competitive salary packages.

STATE OF DATA ENGINEERING IN INDIA 36


Similarly, the IT/ITes sector experienced a noteworthy
decline in attrition, with rates falling from 19.0% to 13.38%.
This suggests that companies within this sector are
successfully enhancing their employee engagement
strategies, focusing on skill development, and offering
attractive compensation and benefits packages to reduce
turnover and retain their data engineers.

Here’s a detailed look at the attrition rates for data engineers


by sector:
Telecom: 6.10% (down from 10%)
Industrial/Manufacturing: 8.93% (down from 14%)
Retail/CPG: 10.71% (down from 16%)
BFSI: 12.50% (down from 15%)
Media/Entertainment: 12.60% (down from 15%)
IT/ITes: 13.38% (down from 19%)
Pharma/Healthcare: 15.38% (consistent at 15%)
Internet/E-commerce: 18.66% (down from 25%)

The decreases in attrition rates across these sectors not


only demonstrate an overall enhancement in retention
strategies but also highlight how specific industries are
adapting their human resource practices to better meet the
needs of their data engineering workforce. Such strategic
adjustments are crucial for maintaining a stable and
committed team of data engineers who can drive innovation
and support critical business functions in a competitive
landscape.

AIM RESEARCH 37
Sectoral Shifts in Attrition Rates for Data
Engineers

Attrition Rate Changes for Data Engineers by Sector (2023-2024)

2023 2024

Domestic Firms

IT/ITes Firms
Company Types

Captives/GCC

Consultancy Firms

Pure Play Analytics Firms

Startups

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%


Attrition Rate (%)

The year 2024 marked a pivotal shift in attrition rates among


data engineers across various company types, with IT/ITes
firms demonstrating the most dramatic improvement. These
firms managed to reduce their attrition rate from 19% in
2023 to just 8% in 2024, a decrease of 11 percentage
points.

This substantial decline reflects the success of targeted


retention strategies implemented by IT/ITes companies.
These strategies include offering competitive salaries,
providing ample opportunities for professional advancement,
and enhancing overall employee engagement.

STATE OF DATA ENGINEERING IN INDIA 38


Here’s a closer look at the attrition rates by company type
for data engineers:
Domestic Firms: Remained stable at 15%
IT/ITes Firms: Decreased from 19% to 8%
Captives/GCC: Decreased from 20% to 13%
Consultancy Firms: Reduced from 24% to 15%
Pure Play Analytics Firms: Dropped from 27% to 14%
Startups: Lowered from 29% to 14%

This trend indicates not only the particular success of


IT/ITes firms in honing their employee retention tactics but
also highlights a broader movement within the tech industry
to cultivate environments that foster long-term career
growth and satisfaction.

Companies like consultancy firms, captives/GCC, pure play


analytics firms, and startups also saw notable improvements
in their attrition rates, suggesting a widespread adoption of
more refined human resources practices designed to retain
skilled data engineers. This collective shift is critical in an
industry where the demand for tech talent continues to
outpace supply, making the retention of existing employees
increasingly crucial for sustaining business growth and
innovation.

IT/ITes firms saw a significant


11% decrease in attrition rates,
down from 19% to 8%, showcasing
effective retention strategies.

V 39
RESEARCH

Roles & Skills in


Data Engineering
in India: 2024
With different levels of expertise in data
engineering roles, an average of 29.5% of
data engineers are proficient in Python, SQL,
ETL, and PySpark. This highlights the
significance of skills for all individuals,
regardless of experience level.
Skill Proficiency Across Experience Levels in
Data Engineers

Distribution of Key Skills Among Data Engineers by Experience Level

Currently, an average of 29.5% of data engineers across


various experience levels demonstrate proficiency in
essential technologies such as Python, SQL, ETL, and
PySpark. This statistic emphasizes the critical nature of
these skills for data engineers, regardless of their seniority in
the field.

AIM RESEARCH 41
The analysis of skill distribution based on years of
experience reveals interesting trends:
Data Engineers with 3-6 Years of Experience: This
group shows a slightly higher proficiency in cloud
platform skills, including AWS, Azure, and Google Cloud
Platform (GCP), compared to their more senior
counterparts. This indicates that mid-level data
engineers are at the forefront of adopting and
implementing cloud-based data solutions, likely due to
the current emphasis on cloud technologies in newer
projects and roles.
Data Engineers with 6-10+ Years of Experience:
Professionals in this category exhibit a higher proficiency
in specialized skills such as Snowflake, Redshift, and R.
This trend suggests that as data engineers gain more
experience, they tend to develop deeper expertise in
specific tools and technologies, which are often crucial
for managing complex data architectures and large-
scale data operations.

These findings not only highlight the different skill sets


emphasized at various stages of a data engineer's career
but also reflect the evolving nature of the data engineering
discipline itself.

As the industry continues to advance, the tools and


technologies that are most valued may shift, but the
constant will be the need for ongoing learning and
adaptation. This analysis helps organizations understand
where to focus their training and development efforts to
build a skilled and adaptable data engineering workforce.

STATE OF DATA ENGINEERING IN INDIA 42


Distribution of Data Engineering Roles Across
Experience Levels

Role Specialization Among Data Engineers by Years of Experience

Less than 1 Years 1-2 Years 3-5 Years

6-10 Years More than 10 Years

Big Data Engineers

Business Intelligence Engineer

Machine Learning Engineer

Data Architects

Data Warehousing Engineer

Database Engineer

Database Developer

ETL Developer

Data Specialist

Data Consultant
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

The distribution of roles among data engineers varies


significantly with years of experience, underscoring the
progression of career specialization within the field. Notably,
Data Specialists have a pronounced presence among those
with 6-10 years of experience (30.55%) and those with
more than 10 years (33.76%). This distribution suggests
that as data engineers gain experience, there is a marked
trend towards specializing in particular domains or
technologies that require deeper expertise.

AIM RESEARCH 43
Similarly, Data Consultants are predominantly found among
professionals with more than 10 years of experience
(46.7%), emphasizing the role experienced consultants play
in providing strategic guidance and advisory services on
complex data-related initiatives.

Here’s a breakdown of the percentage distribution of data


engineers across various roles by their years of experience:
Big Data Engineers: Early career (1.70%), Developing
(10.80%), Mid-Level (22.20%)
Business Intelligence Engineers: Early career (1.51%),
Developing (8.46%), Mid-Level (16.01%)
Machine Learning Engineers: Early career (6.65%),
Developing (24.38%), Mid-Level (27.70%)
Data Architects: Early career (0.79%), Developing
(4.72%), Mid-Level (9.45%)
Data Warehousing Engineers: Early career (1.01%),
Developing (8.54%), Mid-Level (17.09%)
Database Engineers: Early career (3.67%), Developing
(18.35%), Mid-Level (25.99%)
Database Developers: Early career (7.34%), Developing
(19.31%), Mid-Level (25.10%)
ETL Developers: Early career (1.28%), Developing
(10.21%), Mid-Level (22.98%)
Data Specialists: Early career (3.05%), Developing
(11.74%), Mid-Level (20.90%)
Data Consultants: Early career (1.06%), Developing
(6.94%), Mid-Level (16.99%)

This detailed breakdown illustrates not only the specialized


roles that data engineers often progress into as they gain
experience but also highlights the importance of continuous
learning and adaptation in the field. Companies can use this
information to tailor their development programs and
recruitment strategies to align with the evolving expertise
requirements of their data engineering teams.

STATE OF DATA ENGINEERING IN INDIA 44


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1
RESEARCH

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