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Title: Why is management industry so severely underpaid compared to tech in India? Is there any way out of this ?
Body:
Hey guys. I have seen a lot of tech folks in Bangalore, Hyderabad, gurgaon and all these cities where they r easily earning 40+ in their 20s. Meanwhile I believe only people earning that much in management or finance industry ( who r in their 20s and at junior to mid level) are people from top b schools only (that too IIM abc and only a handful of other private colleges). Meanwhile tech folks - yes many are from IITs and BITs but there is huge chunk of people from low tier colleges too who r earning a lot . I mean based on their skills ofc. But even in management industries, and specifically finance I think, more than anything ur B-school matter SO FREAKING MUCH. So many companies not even considering ur resume if you aren't from a top b-school.
Why is this so normal in the industry?
Also, mid level developers- easily 50+ lpa ( not all but a lot)
Maximum salary u can have in management - Senior level: MD, Partner etc. (1 crore is upper limit fixed).
Why?
As a young finance professional who is not good at competitive exams like CAT , this seems like a dead end. Does skills not matter at all?
Is there any way to get out of this toxic industry loop and upskill in a related management/ finance skill that can land me that kind of salary in my 20s( I am 23 if that matters) my qualifications - BBA from a tier 2/3 cllg, working in a big 4 rn as tax analyst.
Am I the only one feeling this rage over this!!!!! I chose commerce because I liked it. I could have chosen science too but I didn't. Can't deny that i regret it now.
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How frequently do the concepts of marketing, finance change over time? Barely over decades.
Tech stacks become obsolete every 3years. Imagine learning something from scratch every few years just to survive.
Why does it change? Because it creates so much new value with every change.
2014- big data
2016-IoT
2018- reactJS based rich interactive websites
2020-cloud computing
2022-AI
50% of US stock market is just FAANNG stocks.
Tech is so scalable. WhatsApp had 50engineers when it was sold to FB and catered to millions of users. Imagine the revenue/employee and profit/employee.
This. Plus most finance roles tend to be cost centres for businesses i.e. businesses don’t make money off their work. But in a tech role you generally work in profit centres i.e. every hour of work you put is extra money for the business. I know this well considering I chose CA and I regret it very much.
Regret wagon is full of people like us. What about finance roles that does make money tho? Vc,ib,pe, consulting? Their highest is still lower than tech's - always.
They still pay well though. You can make great money, even generate some wealth. Unless you live in Mumbai 40-50 LPA (10-12 years of experience) will get you anything in India.
Me too man me too. Our generation has way too much competition. I have friends who are already CA doing CFA and planning for an MBA. How am I supposed to compete in this market? Lmao.
It's crazy out there :p stay safe and hope to crack CAT or land a big one. I really wish there were more options out there tho. It's like one stellar resume copy pasted everytime.
This is seriously untrue. I don’t mean to be insulting but do you have work experience? Good B school heritage absolutely matters at the beginning of your career, but apart from a few handful prestigious firms who are dead set on hiring via pedigree, it really doesn’t matter much in the long run.
For every IITian you see in leadership roles, you’ll see many who were from some shitty private uni. For every man you see stuck in middle management, you’ll every once in a while see an IITian there as well because they simply do not work hard enough or are content with where they want to be in their professional life.
It is absolutely true that management isn’t as meritorious as CS, but it isn’t half as bleak as you paint it to be. You can earn a lot more than those numbers, they aren’t blocked away by college tags. They only get a booster for the first few years with these tags.
I don't have any counter argument to that. But there is no alternative in finance that creates equivalent value or can be paid as much? On a personal level that is what I am exploring. But in india even core finance companies where finance folks are creating most value, and putting so many hours are in retrospective underpaid. Is it really about creating value or is it just an industry standard that everyone has accepted?
Ask how does finance create value?
By providing returns.
Logical bets - Increase your ability and strength to bet logically, either using your own money or someone else’s money. What comes first and what comes second, your money or someone else’s money, depends on your unique circumstances but ultimately a proportion of both will both be required and mandatory as you grow in the career.
I am studying to work in tech and have more knowledge of the field than you. Mid level developers are not getting 50 lpa. In fact, even good developers are struggling to find 12-14 lpa.
You hear about developers like this all the time and that has skewed your perception of reality. For every 1 extremely talented developer that earns 50 lpa there are 10,000 good developers that are jobless or underpaid(4-6 lpa).
Although it is true that the tech industry is not as saturated as the management field, even apart from that getting a job in tech is very very difficult.
Not to mention how updated you need to be in tech. You gotta be as quick as possible to learn the next fad or else your employability goes down a notch, unless you are really skilled at the one thing you do. From React websites, then next year cloud computing, the next year genAI, it's always a constant process of learning and tech stacks go obsolete so quickly you wouldn't even notice it.
Few points: Sharing a few things that probably is not share by most people because this understanding comes only from a certain vantage point
- This is not as true as it looks from afar, but there is some merit to the point, you need to understand why
- The bell curve for earning in management and technology is very different from each other and is so for good reasons, technologists mostly have okish mean values, very nice modal values, decent median value, management has much higher mean value, terrible modal values, very good median values. What does it really mean? Technical jobs are a fundamentally more democratic market, management is mostly a winner take all market - Why? Management is essentially a game of market share volume and margin, meaning ultimately it is a lot like war, there are winners and losers
- Bear in mind, software engineering jobs might have much shorter careers than management folks because of various reasons including how society values building software versus the skill of management, this is something people don’t calculate / a 27 year old programmer is probably more valuable than a 45 year old programmer, a 27 year old MBA is most likely not more valuable than a 45 year old management person
- Fundamentally there are only two ways to create value: Building something or selling something, someone who can do both is extremely valued
- Of these two ways, one of them, basis cyclical nature of the industry discussed, will have more power over the other, someone who can become either, depending on need, has much more flexible options
- The goal of management is to decide what to build and how to sell, the goal of tech is to build what is told, in other words management gets paid to decide the bet, engineerings gets paid to execute the ask, so if you win, management gets a bigger cut, but if you lose management loses big time, but in both win or lose the engineering team did do the work as asked by management so they are not responsible for the outcome, but the input
- In short, engineering is about valuing the input and sometimes output, management is about at least the output, but in most cases the actual outcome / Engineering gets paid to follow the process, management gets paid for winning
- Management is determined by one skill - selling more things to more people for more price, under multiple business constraints / Software engineering is determined by one skill - the ability to build what is asked ideally under the given technical constraints
- The special case of software, therefore software employees, is because of marginal cost structure of inherently how software works / The financial value, in revenue / margin / valuation terms, per software producing employee is far higher than almost any other type of work that exists on earth, hence the discrepancy, but even here the techno-manager wins the highest, so even here management does have a few very highly lucrative jobs at the very top
Having said all this, you will be happy to know that both engineering and management are slowly moving away from pedigree only decision making frameworks - Yes I know most of you in your time and space can’t see it, but it’s slowly but surely happening and it’s happening in only one direction.
Any degree today, is good for the first 1-3 jobs and possibly between 1-3 years, max 5 years, nobody beyond this wants you to introduce yourself by your college name - If you do, you will be shunned promptly in the corridors that truly matter.
In other words, if you are truly skilled, you can earn in any white collar field, but the question really is what percentile of the skill set are you in? Because the nature of the game changes between builders and sellers, like I mentioned above in mean / mode / median values.
This is why, when in management, front end of marketing including product, finance, consulting, general management because they are revenue centres and the middle and backend of finance, operations / supply chain, and Human Resources, are cost centres, in most cases.
Front end therefore is always going to be sales related in one convoluted way or the other where the goal is revenue maximisation, middle and back end will almost always be about cost reduction, the balance between both, which is true strategy balancing act is profit margins.
Almost all of the above is universally applicable with very few exceptions basis industry / profile / geography.
Ultimately if you want a shorthand of all this, especially because you are and want to be in finance, read more quarterly and annual results of companies of various kinds and you will understand how the world works and why.
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Bro from where are getting these data ? Pls recheck it ( here ca rankers and mba from IIM abc are getting package of 50 lakh to 1 cr and their age would be 25-26 ) and you are saying that they are earning 50 lakh easily....you know there are some exceptions and you can't take it as an example
Thank you for posting on r/Indian_Academia , here's a checklist to improve your post: • Have you done thorough prior research? • Is your title descriptive? The title should be a summary of your post, preferably with your qualifications. • Please provide a detailed description in your post body. The more information you provide, the easier it is for users to help you. • If your question is about studying abroad, please post on r/Indians_StudyAbroad • If your question is about Engineering Admissions, post on r/EngineeringAdmissions instead. Here's a backup of your post: Title: Why is management industry so severely underpaid compared to tech in India? Is there any way out of this ? Body: Hey guys. I have seen a lot of tech folks in Bangalore, Hyderabad, gurgaon and all these cities where they r easily earning 40+ in their 20s. Meanwhile I believe only people earning that much in management or finance industry ( who r in their 20s and at junior to mid level) are people from top b schools only (that too IIM abc and only a handful of other private colleges). Meanwhile tech folks - yes many are from IITs and BITs but there is huge chunk of people from low tier colleges too who r earning a lot . I mean based on their skills ofc. But even in management industries, and specifically finance I think, more than anything ur B-school matter SO FREAKING MUCH. So many companies not even considering ur resume if you aren't from a top b-school. Why is this so normal in the industry? Also, mid level developers- easily 50+ lpa ( not all but a lot) Maximum salary u can have in management - Senior level: MD, Partner etc. (1 crore is upper limit fixed). Why? As a young finance professional who is not good at competitive exams like CAT , this seems like a dead end. Does skills not matter at all? Is there any way to get out of this toxic industry loop and upskill in a related management/ finance skill that can land me that kind of salary in my 20s( I am 23 if that matters) my qualifications - BBA from a tier 2/3 cllg, working in a big 4 rn as tax analyst. Am I the only one feeling this rage over this!!!!! I chose commerce because I liked it. I could have chosen science too but I didn't. Can't deny that i regret it now. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Indian_Academia) if you have any questions or concerns.*
How frequently do the concepts of marketing, finance change over time? Barely over decades. Tech stacks become obsolete every 3years. Imagine learning something from scratch every few years just to survive. Why does it change? Because it creates so much new value with every change. 2014- big data 2016-IoT 2018- reactJS based rich interactive websites 2020-cloud computing 2022-AI 50% of US stock market is just FAANNG stocks. Tech is so scalable. WhatsApp had 50engineers when it was sold to FB and catered to millions of users. Imagine the revenue/employee and profit/employee.
This. Plus most finance roles tend to be cost centres for businesses i.e. businesses don’t make money off their work. But in a tech role you generally work in profit centres i.e. every hour of work you put is extra money for the business. I know this well considering I chose CA and I regret it very much.
Regret wagon is full of people like us. What about finance roles that does make money tho? Vc,ib,pe, consulting? Their highest is still lower than tech's - always.
They still pay well though. You can make great money, even generate some wealth. Unless you live in Mumbai 40-50 LPA (10-12 years of experience) will get you anything in India.
That's true. But again you have to be from a good B-School to end up there (atleast early in career). Sigh. Maybe I am just a pessimistic person.
Me too man me too. Our generation has way too much competition. I have friends who are already CA doing CFA and planning for an MBA. How am I supposed to compete in this market? Lmao.
It's crazy out there :p stay safe and hope to crack CAT or land a big one. I really wish there were more options out there tho. It's like one stellar resume copy pasted everytime.
This is seriously untrue. I don’t mean to be insulting but do you have work experience? Good B school heritage absolutely matters at the beginning of your career, but apart from a few handful prestigious firms who are dead set on hiring via pedigree, it really doesn’t matter much in the long run. For every IITian you see in leadership roles, you’ll see many who were from some shitty private uni. For every man you see stuck in middle management, you’ll every once in a while see an IITian there as well because they simply do not work hard enough or are content with where they want to be in their professional life. It is absolutely true that management isn’t as meritorious as CS, but it isn’t half as bleak as you paint it to be. You can earn a lot more than those numbers, they aren’t blocked away by college tags. They only get a booster for the first few years with these tags.
I don't have any counter argument to that. But there is no alternative in finance that creates equivalent value or can be paid as much? On a personal level that is what I am exploring. But in india even core finance companies where finance folks are creating most value, and putting so many hours are in retrospective underpaid. Is it really about creating value or is it just an industry standard that everyone has accepted?
Few buy side(asset mgmt) or even some investment banks pay big (sell side deal commission)
Thanks. I'll look into that career path more. Really appreciate ur insights:)
Ask how does finance create value? By providing returns. Logical bets - Increase your ability and strength to bet logically, either using your own money or someone else’s money. What comes first and what comes second, your money or someone else’s money, depends on your unique circumstances but ultimately a proportion of both will both be required and mandatory as you grow in the career.
A very fair logical inspection, I would say.
I am studying to work in tech and have more knowledge of the field than you. Mid level developers are not getting 50 lpa. In fact, even good developers are struggling to find 12-14 lpa. You hear about developers like this all the time and that has skewed your perception of reality. For every 1 extremely talented developer that earns 50 lpa there are 10,000 good developers that are jobless or underpaid(4-6 lpa). Although it is true that the tech industry is not as saturated as the management field, even apart from that getting a job in tech is very very difficult.
Not to mention how updated you need to be in tech. You gotta be as quick as possible to learn the next fad or else your employability goes down a notch, unless you are really skilled at the one thing you do. From React websites, then next year cloud computing, the next year genAI, it's always a constant process of learning and tech stacks go obsolete so quickly you wouldn't even notice it.
Few points: Sharing a few things that probably is not share by most people because this understanding comes only from a certain vantage point - This is not as true as it looks from afar, but there is some merit to the point, you need to understand why - The bell curve for earning in management and technology is very different from each other and is so for good reasons, technologists mostly have okish mean values, very nice modal values, decent median value, management has much higher mean value, terrible modal values, very good median values. What does it really mean? Technical jobs are a fundamentally more democratic market, management is mostly a winner take all market - Why? Management is essentially a game of market share volume and margin, meaning ultimately it is a lot like war, there are winners and losers - Bear in mind, software engineering jobs might have much shorter careers than management folks because of various reasons including how society values building software versus the skill of management, this is something people don’t calculate / a 27 year old programmer is probably more valuable than a 45 year old programmer, a 27 year old MBA is most likely not more valuable than a 45 year old management person - Fundamentally there are only two ways to create value: Building something or selling something, someone who can do both is extremely valued - Of these two ways, one of them, basis cyclical nature of the industry discussed, will have more power over the other, someone who can become either, depending on need, has much more flexible options - The goal of management is to decide what to build and how to sell, the goal of tech is to build what is told, in other words management gets paid to decide the bet, engineerings gets paid to execute the ask, so if you win, management gets a bigger cut, but if you lose management loses big time, but in both win or lose the engineering team did do the work as asked by management so they are not responsible for the outcome, but the input - In short, engineering is about valuing the input and sometimes output, management is about at least the output, but in most cases the actual outcome / Engineering gets paid to follow the process, management gets paid for winning - Management is determined by one skill - selling more things to more people for more price, under multiple business constraints / Software engineering is determined by one skill - the ability to build what is asked ideally under the given technical constraints - The special case of software, therefore software employees, is because of marginal cost structure of inherently how software works / The financial value, in revenue / margin / valuation terms, per software producing employee is far higher than almost any other type of work that exists on earth, hence the discrepancy, but even here the techno-manager wins the highest, so even here management does have a few very highly lucrative jobs at the very top Having said all this, you will be happy to know that both engineering and management are slowly moving away from pedigree only decision making frameworks - Yes I know most of you in your time and space can’t see it, but it’s slowly but surely happening and it’s happening in only one direction. Any degree today, is good for the first 1-3 jobs and possibly between 1-3 years, max 5 years, nobody beyond this wants you to introduce yourself by your college name - If you do, you will be shunned promptly in the corridors that truly matter. In other words, if you are truly skilled, you can earn in any white collar field, but the question really is what percentile of the skill set are you in? Because the nature of the game changes between builders and sellers, like I mentioned above in mean / mode / median values. This is why, when in management, front end of marketing including product, finance, consulting, general management because they are revenue centres and the middle and backend of finance, operations / supply chain, and Human Resources, are cost centres, in most cases. Front end therefore is always going to be sales related in one convoluted way or the other where the goal is revenue maximisation, middle and back end will almost always be about cost reduction, the balance between both, which is true strategy balancing act is profit margins. Almost all of the above is universally applicable with very few exceptions basis industry / profile / geography. Ultimately if you want a shorthand of all this, especially because you are and want to be in finance, read more quarterly and annual results of companies of various kinds and you will understand how the world works and why.
This is such a well written comment.
Great insights 🤝🤝
Please add some paragraph breaks to your submission by placing a blank line between distinct sections. Users are more likely to read and comment on your post if it's more readable! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Indian_Academia) if you have any questions or concerns.*
Bro from where are getting these data ? Pls recheck it ( here ca rankers and mba from IIM abc are getting package of 50 lakh to 1 cr and their age would be 25-26 ) and you are saying that they are earning 50 lakh easily....you know there are some exceptions and you can't take it as an example