Analytics India Salary Study 2016

Transcription

1 Analytics India Salary Study 2016 Presented by April 2016

2 TABLE OF CONTENTS 1. Foreword 2. Introduction 3. Emerging Job Roles In Analytics 4. Research Methodology 5. Parameters Of Study 6. Overview Of Salary Trends 7. Salary Trends Across Tools & Skills 8. Salary Trends Across Cities 9. Salary Trend For Skills Across Cities 10. Salary Trends In Experience 11. Salary Trends Across Company Type 12. Conclusion Copyright 2016 Analytics India Magazine & AnalytixLabs All rights reserved. No part of this work may be reproduced or copied in any form or by any means graphic, electronic, or mechanical, including photocopying, recording, taping, Internet, or information storage and retrieval systems without the written permission of Analytics India Magazine and/or AnalytixLabs. Any other brands and/or product names used in this document are trademarks or registered trademarks of their respective companies.

3 FOREWORD Bhasker Gupta Founder & Chief Editor Analytics India Magazine Sumeet Bansal Founder & CEO AnalytixLabs It is the prime honor of Analytics India Magazine to present this year s Annual Analytics India Salary Study Analytics India Magazine has been catering to the growing analytics community in India since last 4 years. Being the voice of analytics community, we have become India s leading Online portal and are continually striving towards providing the best possible reads including thought-leadership articles, case studies, researches, interviews and the latest news and updates on analytics. It is hardly surprising that we have not only seen the growth of analytics in India, but have also followed it closely. The recent advent of analytical tools in India has created a plethora of opportunities for data professionals. However, it is vital to know which way the wind is blowing before setting to sail! Therefore, this report is our annual initiative highlighting the latest salary trends, along with the popular skills and software in the current scenario helping professionals in making the right career decisions. Moreover, we feel privileged to partner with AnalytixLabs this year, one of the front-runners in analytics education in India, who have worked with us for months to bring this report to its fruition. Enjoy number crunching and happy reading! As one of the first analytics training institutes, AnalytixLabs is recognized as a pioneer in analytics training since Our faculty members have over 50 years of global analytics experience and are drawn from leading consulting and technology firms such as McKinsey, KPMG, Deloitte, Fidelity, Facebook, Genpact, etc. Analytics, as an industry, is growing as companies are increasingly taking up an integrated approach in Analytics. As a result, demand for professionals with Analytics skills is on the rise. In fact, at AnalytixLabs, we get admission applications from candidates who are, either analytics professionals wanting to enhance their skills, or are professionals from other fields who want to get into analytics. The question invariably on everyone s mind is how analytics will help them grow in their career. This is an easy question, since analytics has become a key performance differentiator in every business function rather than the once nice to have function. Hence, this, in partnership with Analytics India Magazine, is well-timed with this trend and serves as a good dipstick on this transition that the analytics industry is dealing with. Further, it gives an overview of the emerging analytics jobs. We hope you find this report interesting and useful. Wishing you a bright future, enjoy reading! 4 5

4 It is a capital mistake to theorize before one has data. Sherlock Holmes in A Study in Scarlett by Arthur Conan Doyle. INTRODUCTION For the last several years, several reports from think-tanks like McKinsey, Deloitte and Harvard have consistently forecasted that the demand for analytics professionals would supersede the supply, However, it is only in the last two years that the majority of organizations have started filling this gap like never before. With the acceleration in the use of devices that constantly produce data, organizations are drowning in data and yet starving for insights. Hence, the adoption of analytics has been unprecedented in this period leading to emergence of both multidisciplinary and new specialized job roles. When Data Analytics investments have dominated the enterprises spending in across all the sectors and the same trend is expected of coming years, then salary becomes an important factor for professionals looking for lucrative career options. Thus, this report acts as a useful dipstick in the growing world of analytics and also helps the aspirants to understand the prospects of emerging job roles, what is more suitable for them, and what they can expect. We have tried to share the insights on salary through various approaches, such as job roles, skills sets and different type of firms. This has become important and necessary when most of the candidates find themselves in a maze with new terminologies, tools and job roles coming up frequently, without any clear definition or demarcation. An initiative by Analytics India Magazine in partnership with AnalytixLabs, the focus of this study is to compare the salary trends amongst professionals, specializing in different skills and tools, while also providing an overview of the analytics salary in key Indian metropolitan cities as well as companies and across various experience levels. 6 7

5 EMERGING JOB ROLES IN ANALYTICS Ankita Gupta is the Principal Consultant and Co-founder of AnalytixLabs. Starting her career with McKinsey where she helped set-up the Analytics team in 2004, she has had a core focus in the Marketing Analytics area. Post almost 8 years with McKinsey, she then moved to Fidelity Investments to own the analytics for their UK client-side businesses. As a part of her work, she has worked across various industries like Healthcare, Telecom, Banking, Hi- Tech across various countries like Japan, Russia, UK, US concentrating in domains like Choice Based Modelling, Customer Life cycle Management and Pricing. By education, Ankita holds a Maths Hons degree from St Stephen s College, Delhi University and has also completed her MBA from ISB, Hyderabad. Traditionally, business intelligence has been helping firms analyze their historical data. However, tables turned when Data Analytics gave the power to predict events and suggest actions. Due to its potential, the past few years have witnessed a phenomenal growth in the reach of data analytics. Although some domains, like marketing, sales, and customer relationship management, started using data analytics much before any other field, but today almost all sectors identified be it research, government organizations, healthcare, services, manufacturing, airlines or even sports are realizing the value data analytics has and are continuously roping in competent professionals to help them milk the several opportunities that they might have missed otherwise. With increasing adoption of Analytics, rising alongside the relatively new big data platforms, are some new job roles, like Data Scientist, Data Engineers, Big Data analysts and Data Visualization analysts. Let s take a look at these emerging roles: 8 9

6 Big Data Analyst: Big Data Analyst requires strong data mining skills, including ETL (data Extraction-Transformation- Loading), data validation, data exploration and aggregation. Here at least a basic working knowledge of Big Data platforms, like Hadoop and MapReduce, Pig and Hive is mandatory. Using scripting languages like R and Python, a Big Data analyst should be able to generate business insights after processing the raw data. The role also involves working with IT teams and some job roles may even require statistical analysis capabilities. Data Scientist: A data scientist primarily deconstructs structured and unstructured data, explores it through the use of Predictive and Prescriptive Analytics, relates the insights obtained to the objectives of the firm and communicates their value to different business functions (like IT, Marketing, Management, Operations, etc). This role requires inter-disciplinary skills and high degree of proficiency with analytics languages, like SAS/ R/ Python as well as a good working knowledge of platforms like Hadoop. A data scientist is expected to combine the skills of analyzing big data, using advanced statistical and machine learning algorithms, harnessing the power of social media and wielding investigation tools to tell a compelling story that a layman can understand. Data Engineer: A data engineer designs, builds, and manages the information or big data infrastructure. Essentially, they develop the architecture and systems which drive analysis and processing of data as well as ensure efficient functioning of these systems. They also gather and process raw data, integrate innovative solutions and algorithms into production systems and support business decisions with ad hoc analysis. Data engineers are required to work closely with IT teams and Data Scientist. Their role is quite instrumental for successful implementation of enterprise wide analytics. Data Quality Operator Data Architect Work flow Integrator Key technology skills needed for rapid/agile insight delivery Work hand-in-hand with IT Work flow Integrator Data Strategist Data Scientists Change manager Business Partner Data Analytics Leadership Translators / hard-to-find skills - deeply understand how analytics can deliver business value Data Visualization Analyst Model Developer Analytics Skills Technology Skills Business Skills Analytics factory- front line Partly offshore-able roles - e.g.: create reports, data transformations, etc Data Visualization Analyst: They utilize BI and visual analytics tools like, Tableau, QlikView etc. to analyze large amount of data and present a compelling story in visual formats such as infographics, maps and other multidimensional charts and dashboard. Data Visualization has got to do with Descriptive analytics where explanation and exploration are the two main goals. As competition is increasing and company performance is becoming necessary to track, the demand for visual analysts is increasing. Conclusion: Despite the demarcations between job titles, skills and roles often overlap, or are interchangeably used and organization offers a position where the expertise required is a combination of two or more roles. At end of the day, big data analytics behemoth is basically looking for two types of people those who can channelize large amount of information and those who can translate business problems to analytical problems, while the ability to communicate remains intrinsic to both roles. As more and more businesses and government organizations across the world are going to put their faith in data-driven decisions, a plethora of roles previously unheard of such as Internet of Things (IoT) architect, marketing technologist, technology broker and chief data officer will be introduced into the fold of data analytics. The skills required for such roles will be in tandem with the development of existing technologies and, undoubtedly, with new technologies unfurling, exciting opportunities for professional will come up to learn and grow

7 Descriptive What has happened? Predictive What could happen? Prescriptive What should we do? Business Problems How satisfied are my customers? How is my business performing, over the last one year? Where is company bleeding its revenues? How many dissatisfied customers will leave in the next 6 months? Which of my customers is likely to default on payments? Do I have enough staff to answer calls? How can I optimize my customer retention budget for maximizing ROI? How should we serve the customers to increase customer satisfaction? How analytics helps? What happened? Where exactly is the problem? How many, how often, where? What will happen next? What if these trends continue? What could happen? What actions are needed? What is the best possible outcome? What is the best outcome given the variability in specified areas? Tools & Techniques Business Intelligence: Reports, Dashboards Predictive Models, Forecasts, Statistical analysis Optimization, Machine Learning 12 13

8 PARAMETERS OF STUDY From our research we found that there are certain factors that affect the salary trends pan India, and we divided the data based on these parameters for the ease of understanding. Primarily, these are crucial while deciding the salary. City Experience Technical Skills Type of Company RESEARCH METHODOLOGY This report is a result of extensive primary and secondary research, spread over a few months. Data was gathered from a variety of sources, including Online job portals, interviews of HR professionals, working professionals, senior management from analytics firms, as well as freshers and analytics students of AnalytixLabs. Our data shows that cities with a higher cost of living have higher salaries. Since, the Analytics industry thrives on analytical tools, we also compared different tools being used and the salary range for the same. However, salaries in analytics can also vary considerably depending on role and years of experience as well as the type of company. Thus, we have looked at the wages by type of company, considering the various consulting, IT and boutique firms in the analytics domain

9 1.1% 4.9% 11.3% OVERVIEW 15.4% 42.2% 0-6 Lacs 6-10 Lacs 42.2% 25.1% Lacs Lacs 11.3% 4.9% The average analytics salary in India for year ending 2015 was INR 9.5 Lacs across all experience level and skill sets. 25.1% Lacs 15.4% 50+ Lacs 1.1% 0-6 Lacs 6-10 Lacs Percentage of Analytics Professionals Across Salaries in % 36.6% 25.1% 31.7% As the analytics industry is evolving, it is attracting a lot new professionals both from other industries as well as graduates/post graduates. This has increased the width of the lowest salary band as new people are coming in, thereby increasing this percentage from 36.6% in 2015 to 42.2% in Hence, we have seen a large number of job openings and hiring happening for the less experienced in tier B cities, but with lower average salaries. This has brought down the overall average salary scene in the sector across the country. Conversely, the overall salaries in cities, individually, has increased from On one hand, the Analytics professionals commanding salaries less than INR 6 Lacs has gone up from 36.6% in 2015 to 42.2% in 2016; while Analytics professionals earning more than INR 15 Lacs has increased from 10.5% in 2015 to 11.3% in Lacs Lacs Lacs 50+ Lacs 4.9% 3.2% 1.1% 0.4% 15.4% 17.6% 11.3% 10.5% Key Inference: Analytics professionals with salaries in extreme brackets i.e. less than 6 lakhs & more than 15 lakhs have increased, whereas professionals in bracket 6-15 lakhs have decreased since last year. Comparison of Salaries Between

10 Python NoSQL/MangoDB R Hadoop Qlikview SAS Tableau Spark SPSS 11.3 Lacs 11.1 Lacs 10.8 Lacs 9.9 Lacs 9.5 Lacs 9.1 Lacs 9 Lacs 8.8 Lacs 7.3 Lacs SALARY TRENDS ACROSS TOOLS & SKILLS Within Advanced Analytics profiles, Python gets higher pay than SAS, R and SPSS. Predictive analytics tools BI/ Visualization analytics tools Big Data tools Salary Of Analytics Professionals Across Tools Predictive Modeling 12.1 Lacs Data Mining 9.5 Lacs Big Data 9.7 Lacs MIS Reporting 7.1 Lacs Data Engineer 6.7 Lacs Salary Of Analytics Professionals Across Skills Advanced analytics/ predictive modeling professionals command much higher salaries than their other analytics peers 12.1 Lacs on average. Whereas, Big data professionals receive 9.7 Lacs and data mining professionals get up to 9.7 Lacs on average. BI, Reporting, MIS professionals command 7.1 Lacs on average and data engineer command on average of 6.7 Lacs salaries. Within Big data profiles, Hadoop professionals command an average of 9.9 Lacs, whereas Spark professionals command an average of 8.8 Lacs. NoSql/ MangoDB professionals command on an average of 11.1 Lacs salaries, yet the market of NoSql/ MangoDB is currently very small in India (almost 1/3rd of Hadoop). On the other hand, Qlikview professionals command marginally higher than Tableau professionals in visualization skill jobs 9.5 Lacs vs 9 Lacs on average. This is primarily because, today, Tableau has the maximum number of jobs in the Data Visualization area, as compared to Qlikview. Moreover, given the limited demand and hence, limited availability of Qlikview professionals, the salaries for Qlikview professionals are higher than those of Tableau professionals, even though the difference is marginal. Within Advanced Analytics profiles, Python professionals command higher salaries than SAS, R and SPSS professionals 9.1 Lacs for SAS vs 11.3 Lacs for Python vs 7.3 Lacs for SPSS professionals vs 10.8 Lacs for R. Key Inference: Advanced analytics or predictive modeling professionals command the highest salaries in the analytics industry compared to their other analytics peers i.e Lacs on average

11 SALARY TRENDS ACROSS METROPOLITAN CITIES The cost of living of a city affects its salary distribution, thus the inference is biased considering the living costs per city. This year has seen an almost 15% increase in pay for Mumbai, from an average analytics salary of 9.9 Lacs last year, it has increased to 11.4 Lacs. This is closely followed by Bangalore with 10.3 Lacs salary, and a 5% increase from last year. The third runner up is Delhi-NCR, where the salaries of analytics professionals have increased from 9.4 Lacs to 9.9 Lacs. However, percentage wise, it ties with Bangalore as, it is also a 5% increase in one year. In the 6-10 Lacs bracket, Bangalore leads the pack with 26% earning within this bracket, followed closely by Pune and Hyderabad.0-6 Lacs: In the 0-6 Lacs bracket, Hyderabad dominates with 46% of analytics professionals earning below 6 Lacs followed closely by Pune at 42%. 9.9 Lacs Delhi /NCR Mumbai Bangalore Delhi/NCR 11.4 Lacs 9.9 Lacs 10.3 Lacs 9.8 Lacs 9.9 Lacs 9.4 Lacs 11.4 Lacs Mumbai 8.8 Lacs 8.3 Lacs Pune Hyderabad Pune Chennai Hyderabad 8.8 Lacs 8.7 Lacs 8.4 Lacs 8.1 Lacs 8.3 Lacs 8.5 Lacs Comparison of Salary Trends Across Cities between Lacs Bengaluru 8.4 Lacs Chennai Key Inference: While, the salaries for analytics professionals have increased in these key cities, the salaries in tier B cities have decreased, leading to overall salaries averages being pushed lower 20 21

12 Predictive Modeling Data Mining Big Data MIS Reporting Data Engineer 13.2 Lacs 11.1 Lacs 10.3 Lacs 8.0 Lacs 6.9 Lacs Bangalore Salary Trend For Skills Across Cities Mumbai tends to pay the highest across all skill sets for Analytics. Predictive Modeling Data Mining Big Data MIS Reporting Data Engineer 14.5 Lacs 12.4 Lacs 10.3 Lacs 8.7 Lacs 7.5 Lacs Mumbai In this section, we studied the salaries across the Indian metropolitan cities with respect to the analytics skill sets. For predictive modeling / Advanced analytics, Delhi/ NCR has higher pay scales than Bangalore. On the other hand, the salaries across all skills decreases sharply for cities beyond Bangalore, Mumbai & Delhi/ NCR. For Data Mining, Pune pays higher than Chennai & Hyderabad While Bangalore and Mumbai have a tie for Big Data. Predictive Modeling Data Mining Big Data MIS Reporting Data Engineer 13.3 Lacs 11.0 Lacs 9.2 Lacs 7.4 Lacs 7.0 Lacs Delhi/NCR Predictive Modeling Data Mining Big Data MIS Reporting Data Engineer 11.5 Lacs 8.6 Lacs 8.9 Lacs 6.6 Lacs 5.7 Lacs Hyderabad Predictive Modeling Data Mining Big Data MIS Reporting Data Engineer 10.8 Lacs 8.6 Lacs 9.2 Lacs 7.1 Lacs 5.4 Lacs Chennai Predictive Modeling Data Mining Big Data MIS Reporting Data Engineer 11.6 Lacs 8.7 Lacs 8.9 Lacs 7.4 Lacs 6.0 Lacs Pune 22 23

13 % 1% 0% 0% 14% 81% SALARY TRENDS ACROSS EXPERIENCE LEVELS % 1% 0% 12% 37% 46% 0-3 years 4-6 years Salary trends are studied based on the experience of the professionals and are divided as entry-level, mid-level and senior-level respectively. The entry level has 0-3 years of experience in the domain. At this level, almost 81% of analytics professionals are under the 0-6 Lacs salary bracket. However, an analytics fresher would get an average salary of 4.1 Lacs. In the analytics industry, the highest jump in salaries of almost 60% rise in salary happens on promotion from senior analyst to manager level. The senior level is considered only after 12+ years of experience. These analytics professionals command an average of 24 Lacs as their salary. Moreover, by this time, they are in the top management of their companies % 0% % 9% 9% 20% 35% 28% 13% 21% 31% 29% 0-6 5% % % % 50+ 6% 34% 7-9 years years 12+ years 0-3 yrs 4-6 yrs 7-9 yrs yrs 12+ yrs Key Inference: 4.1 Lacs 6 Lacs 10 Lacs 15 Lacs 24 Lacs Salary Trends Across Experience Levels The salaries of analytics professionals increase by more than 50% for each level increase in their designation. From senior analyst to manager, the jump is more than 60% on average 24 25

14 SALARY TRENDS ACROSS COMPANY TYPE We looked at the different types of companies in the analytics domain based on their size as well as services. The categories in which we divided the companies are: boutique analytic firms, Large IT players, consulting firms, captive centers and domestic players. Boutique analytic firms have a niche focus on analytics as their services, and are therefore the smallest in size compared to the other three. Eg: MuSigma, Fractal Analytics, etc. Large IT players are those whose primary services are IT, but they have in-house analytics teams. Eg: IBM, Infosys, etc Consulting services offer a variety of services, wherein one of those is analytics. Eg: KPMG, Deloitte, PWC, etc On the other hand, the captive centers are those international firms, which have back offices in India, the likes of HP, Dell, Amazon, are not analytics service providers, but they have in-house analytics teams. Lastly, we considered the domestic players, i.e those of Indian origin. They are also into other services, but have in-house teams for analytics. Eg: Reliance, Flipkart, ICICI, etc. Interestingly, we found that there is no difference in average analytics salaries for consulting firms, domestic players or captive centers. The analytics professionals in either of these spheres get up to 12 Lacs on average. However, Boutique analytics firms pay the lowest - an average of 7.9 Lacs, while large IT players pay 9.5 Lacs. Nonetheless, analytics industry still falls in the higher paying bracket compared to other industries such as telecom, e-commerce, manufacturing, advertising, media, etc. Boutique Analytic firms Large IT Players Captive centers Domestic Consulting firms 7.9 Lacs 9.5 Lacs 11.9 Lacs 12 Lacs 12 Lacs Salary trends across company type 26 27

15 CONCLUSION Analytics is the driving force for meaningful insights that lead to better decisions. When open-source platforms like R and Python are rapidly increasing the adoption of advance analytics, the Big Data platforms like Hadoop & Spark are revolutionizing our ability to gain valuable insights from the huge treasure chest of raw data. India, being a KPO hub, is at the helm of this evolution, and new skills requirements are coming up every day thereby increasing the training demand from organizations and professionals who need to up-skill and keep themselves updated. This change is not limited to new tools and techniques, but many new job roles within Analytics have emerged, in addition to the conventional business analytics roles, like Data Visualization Analysts, Big Data Analysts, Data Scientists, and Data Engineers. Thus, on one side, there is tremendous growth opportunity as this industry is moving ahead, and on the other side, the rapidly growing and ever changing industry requirements mean that professionals have to learn new skills and stay abreast of new age job requirements, if they want to stay stronger and longer in the game. In the near future, as salaries continue to increase, we may see professionals from other sectors honing their analytics skills and switching careers. In this regards, this report hopes to present itself as a benchmark for the analytics salary ecosystem in India

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