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Hiring engineers in Bengaluru: what the market actually costs

IT Strategy By Mits Engineering Team 3 min read
Hiring engineers in Bengaluru: what the market actually costs

Any figure you read for engineering salaries in Bengaluru depends almost entirely on who was counted. Indeed puts the average software engineer at around ₹10.4 lakh from 5,700 self-reported salaries. Recruitment platform data covering eight thousand tech roles puts engineers with two to three years at a product company between ₹14 and ₹28 lakh. Neither is wrong. Job-board data skews towards IT services and junior roles and usually captures base pay only; platform offer data captures active switchers at product companies and includes variable and equity. Mixing them produces nonsense, and a lot of published comparison is exactly that.

Using recruitment-platform data consistently, the shape of the market in 2026 looks like this. A fresher earns ₹3.5-6 lakh in IT services, ₹8-15 lakh at a product company, and considerably more at the largest global firms. Two to three years: ₹4.5-10 lakh in services, ₹14-28 lakh in product. Five years: ₹12-18 lakh against ₹22-38 lakh. Eight to twelve years: ₹18-32 lakh against ₹35-60 lakh. The services-to-product gap is roughly two to three times at every level, and it widens with seniority.

Specialisation matters as much as seniority. Site reliability engineering carries a consistent premium over generalist DevOps at every level. Data scientists earn above data engineers in the mid range and converge at senior levels. And the AI premium is the largest movement in the market: an employer survey of over ninety-five global capability centres found AI and ML roles received 21.1 per cent salary increases against a 9.8 per cent average - more than double. A separate compensation survey puts the premium for AI, ML, cybersecurity and cloud skills at thirty to forty per cent. Those two are measuring different things and agree on the direction.

On increments, two large independent surveys converge cleanly on 9.1 per cent projected for India in 2026, up from about 8.9 per cent actual in 2025. The interesting number is underneath the average: technology consulting and services is projected at 6.6 per cent while technology products sits at 9.4 per cent and global capability centres at 9.3 to 10.4 per cent. That three-point spread is the two-speed market in a single figure, and it is why talent flows the direction it does.

Attrition is the most commonly mis-cited number in this market, because the definitions differ. Employer surveys put overall Indian attrition at 16.2 to 16.4 per cent for 2025, down from about 17.5 the year before, with more than eighty per cent voluntary. By sector, financial services is highest at around 24 per cent, hi-tech and IT around 20.5 per cent, and GCCs lowest at 14.1 per cent. Meanwhile the large IT services firms report their own trailing-twelve-month attrition at around 13 per cent. Both are accurate for different populations. One honest gap: we could not find any credible Bengaluru-specific attrition figure at all - the only one in circulation is a consultancy's own unpublished methodology.

The constraint that actually determines your hiring timeline is not salary, it is notice periods. Close to a third of Indian IT roles carry a full ninety-day notice, and the large services firms apply it routinely to experienced staff. A standard thirty-five to forty-five day time-to-hire becomes sixty-five to seventy-five days with a thirty-day notice, and around a hundred and twenty-five to a hundred and thirty-five days with ninety. Four months between opening a role and the person starting. If your plan assumes a team assembled in six weeks, the plan is wrong before it begins.

The context behind all of this is the growth in global capability centres: more than two thousand of them now operate in India, employing about 2.36 million people. They pay above services rates, increase faster, and hold onto people better than anyone else in the market. If you are hiring in Bengaluru you are competing with them whether or not you intended to, and the honest implication is that competing purely on salary is a losing position for most companies. What is winnable is the work itself, and who the engineer reports to.

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