Bengaluru techies are not even earning one-tenth of Silicon Valley salaries, AI may worsen the gap further
Bengaluru, India's tech capital, offers the most cost-effective
software engineering talent
globally, with average annual salaries of just $12,000—nearly one-tenth of the $125,000 average in Silicon Valley, according to a report of the Times of India.t
The report, based on WeAreCity report published by UnboxingBLR, highlights a stark wage gap: engineers in cities like Sydney ($78,000), Tel Aviv ($77,000), Toronto ($75,000), and London ($65,000) earn five to six times more. Even in Asian hubs such as Tokyo ($62,000), Seoul ($51,000), Singapore ($47,000), and Beijing ($46,000), salaries are significantly higher than in Bengaluru.
Despite the disparity, Bengaluru remains a magnet for global tech firms, thanks to its skilled, English-speaking workforce and deep-rooted software ecosystem. The city's competitive costs continue to make it a preferred destination for outsourcing and tech innovation.
However, the global tech job market is in flux. Post-pandemic cost pressures and AI-driven automation have triggered widespread layoffs, particularly in high-cost economies like the U.S. But India, too, is beginning to feel the ripple effects.
Amazon CEO Andy Jassy recently hinted at future workforce reductions, citing AI's growing impact on job structures. Jassy said Amazon already has more than 1,000 generative AI projects either built or in development. These include the upgraded Alexa+ assistant, AI-driven shopping tools, and a revamped customer service chatbot. The company is also using AI in its fulfillment network to improve inventory placement and demand forecasting.
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'Today, in virtually every corner of the company, we're using Generative AI to make customers' lives better and easier,' Jassy said in the memo. He described AI as a once-in-a-generation technology that is quickly transforming how Amazon serves its customers.
Notably, Microsoft is preparing layoffs in its sales division, while Google has offered voluntary exits across several departments, including Communications, Marketing, and Research.
These shifts underscore a broader transformation in global hiring priorities—where affordability, adaptability, and AI readiness are reshaping workforce strategies. In this evolving landscape, Bengaluru's low-cost advantage could be both a strategic asset and a looming challenge.
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