When people say that the world will be ruled by data, they are not wrong. Never has there been such an overload of information and data in the history of mankind. Big data is everywhere around us and it is becoming difficult to function without it in our daily lives.
This can be attributed to the fact that most of the things that we work with today, produce data. Think smartphones, sensors, GPS, and more. All these throw up data necessary to assess consumer behavior, increase conversions and sales, minimize risks, and carry out detailed market analysis to gain an edge over competition.
This has automatically led to a growing need for people who are qualified to analyze and extract meaningful information from this huge amount of data, also known as big data. Professionals working on big data are known as data scientists.
If you are curious about the industries that are increasingly using the services of data scientists, the short answer is all of them. Every industry wants to make use of data to stay competitive and relevant and help move their business forward.
- Banks would like to know how their customers use their accounts and how they can secure them.
- Agriculturists would like weather predictions to make the best use of their lands.
- Telecom companies would want to focus on fraud reduction, ensure dynamic pricing, and evaluate consumer experience through data.
In this article, we will understand the role of a data scientist in today’s data-driven world, the skills required to become a data scientist, and how they can expect to be compensated i.e., data scientist salary range depending on different factors.
Who Is a Data Scientist?
A data scientist is a data expert who has the requisite technical and analytical skills for collecting, analyzing, interpreting, and reporting data in a form that can be understood and used.
Data scientists need to acquire and analyse a huge amount of data not just through advanced tools but also by applying human intelligence and knowledge of the various industries. This is why this role is said to be a cohesive mix of computer science, mathematics, and trend analysis.
Role of a Data Scientist
Before we understand the role of a data scientist in detail, it is important to know why is this role understood to be that of a scientist. Just like scientists research and discover insights, data scientists also conduct experiments on data using various tools and methodologies.
To become a data scientist, one is required to complete a data science course. This is a specialized course that exposes you to theoretical and practical skills necessary to become a data scientist.
One of the most coveted courses is data science with Python. This programming language course helps you in building Machine Learning models, analyzing and building data, and reporting it.
Let’s take a look at the roles and responsibilities that companies usually expect from data scientists:
- Data scientists work closely with the stakeholders of their industry and business. They are responsible for knowing the goals of these stakeholders and how data could be used to achieve these goals.
- One of the foremost roles of data scientists is to ask the right questions. These questions are about what the expectations from data analysis and modeling processes and their implementation in their business processes are.
- Collate and integrate data from relevant sources. These could be structured or unstructured data.
- Identifying any data that is missing and could add value to the analyses.
- Using data analysis tools and platforms such as machine learning, statistical pipelines, and text analytics to identify patterns and trends in the data.
- Using these trends and patterns to answer the industry or business-specific questions.
- Develop and maintain databases.
- Using analysis and visualization techniques to communicate their observations, findings, and suggestions to the stakeholders.
- Taking the feedback from the stakeholders to make changes and improvements in the report.
- Keep an eye out for future trends in the data.
Salary Structure of a Data Scientist
Coming to one of the most important aspects of the job of a data scientist- the emoluments. Data science is a highly-coveted role across industries and this is evident from the salary trends.
Before we understand the different factors that influence a data scientist's salary, let’s understand what the basic structure looks like:
|Basic salary||40-60% of the CTC|
|Dearness allowance||50% of the basic salary|
|House Rent allowance||50% of basic salary if residing in Delhi, Mumbai, Chennai or Kolkata. 40% if residing in any other city|
|Leave Travel Allowance||No real benchmark. Fixed according to the title, pay scale, and position|
|Professional Tax||Tax slabs depend on the respective state government rules|
|ESIC||Employer's contribution is 3.25% and the employee's contribution is 0.75% of the basic salary|
|Provident Fund||Employer and employee contribute 12% of the basic salary|
This is only a generalized break up of a data scientist salary. This, of course, changes depending on several factors. It’s also good to know that the average salary of data analyst is accompanied by great prospects for progression, prestige, and job security.
Factors Determining Data Scientist Salary
Like any other job profile, data scientist salary may be affected by several factors. Some of the most important factors are:
- Job title
Considering all these factors that determine the average salary of data analyst, let’s delve a little deeper into some variables that matter the most while determining the salary levels.
Data Scientist: Pay Scale Based on Location
The location of the job is one of the most important factors that determine data scientist salary. The location determines the number of job opportunities and the cost of living.
Here’s a roundup of the top Indian cities and the average pay scale of a data scientist. For a clearer comparison, these cities are mentioned starting from the highest salary to the lowest:
|City||Salary (Per annum in INR)|
Data Scientist: Pay Scale Based on Companies
Needless to say, the bigger the organization, the higher the pay scale. Not only do the larger companies pay more, but they also offer bigger and more frequent salary hikes.
Here are some of the top technology companies and the data scientist average salary scales offered by them:
|Company||Average salary (Per annum in INR)|
|Tata Consultancy Services||45, 00,000|
|Ernst & Young||41,30,000|
Besides these technology companies, more and more E-commerce companies are also using data science. They use it to study customer behaviour and spending patterns, social media presence, shifts in purchasing behaviours, and more.
To give an instance, Spotify data scientist salary ranges around INR 32,00,000. Amazon data scientist salary averages around INR 40,00,000.
Data Scientist: Pay Scale Based on Experience
The years of experience in data science have a significant impact on the salary payout. This directly translates to the knowledge acquired over time, practical experience gained, and skills honed.
Another factor that counts is the data science learning path. For instance, some people may have a Ph.D. or a Masters degree, others may have been backed by solid private education institutes such as KnowledgeHut data science with Python.
Let’s take a look at the payouts depending on a candidate’s experience:
- Salary for entry level data analyst: In India, the entry level data scientist salary averages around INR 511, 468 p.a. If you have spent any time between 1-4 years, you can expect to earn around INR 773, 442 p.a.
- Salary for mid-level data analyst: A candidate with an experience of between 5-9 years can expect to earn around INR 12-14 lacs p.a.
- Salary for senior data analyst : Highly experienced data scientists can earn around INR 24 lac p.a. However, this is a conservative estimate. Senior data scientist salary can go up much higher than this depending on the performance and specialised skills set of the data scientist.
In this article, we have explored the various facets of the profile of a data scientist. Given how high-in-demand this field is, the opportunities and the pay scales will only rise in the future. Besides this, the role of a data scientist is highly motivated. You can work on solving real-world problems and have a meaningful impact on the lives of people.
Frequently Asked Questions (FAQs)
Q1: Who is a Data Scientist?
A data scientist is a specialized expert who utilizes technology to study data and interpret it to find answers and solutions to help companies take better decisions.
Q2: Is Data Scientist a Well-Paid Job?
Data scientists have highly lucrative careers. With every business house and industry utilizing data to carve their niche and stay competitive, the opportunities and salary scales are only slated to rise.
Q3: What Is the salary of a Data Scientist With No Experience?
An entry-level data scientist, with less than a year of experience can earn up to INR 5,00,000 p.a.
Q4: Is Data Science a Stressful Job Profile?
The role of a data scientist can be a highly challenging one. This is due to factors such as having to put in long hours at work, the pressure to solve important problems, strict deadlines, and management pressure.