Why is startups better than MNCs

Startup better than MNC
Startup better than MNC

Startup better than MNC

There are mainly two types of companies in the IT industry: Startups and MNCs. India is the biggest producer of IT engineers every year.

The big IT cities in India are Bangalore, Hyderabad, Mumbai, Pune, Chennai and Delhi/NCR.

Types of Software Engineers in India

There are several types of Software Engineers in India. Life of software engineers is almost same in every IT city. But if we talked about Bangalore, the life of software engineers working in different work category (Startup and MNC) is totally different from each other.


There are mainly two types of engineers in Bangalore:

First, the people who work for huge IT service companies like Infosys, Wipro, TCS etc. In most cases, they have a 9 to 9.5-hour work-hours policy that they have to maintain weekly, monthly or yearly. They spend a lot of time in office + traveling in company bus/cab. On an average basis, one might need to stay outside home for 11–12 hours on a weekday.

These offices have a lot of amenities to keep you busy and occupied like gyms, swimming pools, indoor and outdoor games, huge cafeterias to sit and chat etc. Most of the work (almost 93% of the projects) in those companies is a support which is very monotonous and repetitive work with very less learning involved. Roughly 7% of projects in those companies are required learning and technical challenges. Most of the engineers there are 3- tier mediocre private colleges who have very little training and expertise in software engineering. But, because most of the projects there don’t need any technical skills, they easily survive there. The only way to earn well in those companies is to have a good rapport and butter the senior management guys. If you want to make a large amount of money in those companies, you have to depend on to travel onsite, save a few thousand dollars per month eating Maggi all day and come back to India after 5 years with a good saving.

If you have weak interpersonal skills (although you have a good coding skill), it is very difficult for you to grow in those companies and rarely get a single onsite opportunity. These type of employees can’t be happy with the employer and are found bitching about their manager in the cafeterias. They mostly keep crying about not getting good hikes, not getting their US VISA initiated, internal office politics etc.


The second types of people are working with startups and product based companies. Such companies provide a lot of flexibility to employees like working from home, no strict working hours etc. Your learning will be really good because you get to work on latest technologies and end to end of a project. Employees may not spend that much time at the office, but the workload is much higher. You might find them working for 12–14 hours a day, but they do it both from office and home. For example, some product based companies make their engineers work like 10 AM to 5 PM in office and then back at home, after some rest and TV, they used to work from 7 PM to 11 PM in the night also. Those offices are quite small and not many amenities to enjoy. They generally pay better than bigger ones like Infosys. Wipro and TCS. The yearly hike is also better and generally, there is no variable pay. You will get most or all of your package as fixed pay.

Now, let’s talk about the disadvantages.

Disadvantages of working in Startups

When you apply for loans, you won’t get any corporate discount because those companies don’t provide any of those facilities. Your loan eligibility is also slightly affected if the company you work for is less than 5 years old. Some banks might decline your loan as well.

Sometimes it also is embarrassing when people ask you where you work and you tell the company name, they might not have heard of the name and will judge you as an incompetent person. If you are a guy looking forward to getting married, girls and their families might reject you because you are not from a ‘reputed’ company. The workplace in these companies is generally dull, with very few team building activities, lunches. The biggest disadvantage of those companies is: you will find only geeks here. You rarely find some good looking girls (except one or two in the testing teams).

And now there are foreign product based companies who have opened their offshore development centers in Bangalore. They build software products that they sell to their customers. In another category, there are captive software units of large fortune 500 companies that have set shop in Bangalore. Examples are JPMorgan, Standard Chartered, Societe Generale etc. They develop and maintain software for their parent companies. Job security is really good at these companies, they generally pay higher than service-based companies. Employees often get a lot of additional benefits like free food, better health insurance plans, better laptops/free iPhones, posh office etc. Now the downside is – most of the work is support/maintenance and rarely development from scratch. Employees in these companies generally tend to stay longer in such companies.

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