Principal Engineer - Talent Analysis

Conceptualized and Developed: March - 2021

The objective of the document is to analyse how Principal Engineering talent has emerged due to complex workloads and technological advancements. This document also provides an overview of job responsibilities, skills of Principal Engineer, how traditional roles are transitioning to Principal Engineer job roles, and global location hotspots analysis for targeted hiring for Retail Industry

Digitalization across industries has led to effective resource allocation and utilization to improve the speed of Project Delivery, which has ultimately led to the emergence of senior job roles with expertise and experience across broader areas

Mass production and evolution of core Increase in global Job demand of sample industries increased the 2000-2010 Senior level Job roles in 2020 as demand of Senior level jobs compared to 2019 like: Plant Manager, Senior Hardware Engineer Principal Engineer 30% With the ever moving world of technology, Retail Product Manager 24% 2010-2015 Evolution of Manufacturing Organizations need people landscape and automation with right skills and led to increase in Senior Level capabilities to respond to Product Owner 22% jobs related to process this rate of change and engineering and automation technologies establish Agile methodologies and Staff Engineer 18% practices Digital Revolution has increased the level of Source: DistinguishedDraup Engineer Technical Responsibility 16% that has led to the 2015-2020 evolution of Senior level Job Roles like: Principal Project Manager 12% 2 Engineer, Product Manager

Source: Draup Source: Draup Analysis, News Articles, Press Releases 2 Considering the recent increase in demand for ‘Principal Engineer’ job role in Retail sector, following components have been analysed in detail for ‘Principal Engineer’:

Agenda Pages 1. Supply & Demand of Principal Job Role Overview: Principal Engineer Engineer talent 4-7 • 2. In –demand skills & workloads 3. Job description overview

9-11 • Career ladder and Job Role Transition Case Study

13-17 • Location intelligence for Principal Engineer talent Source: Draup

Source: Draup 3 Global demand for Principal Engineer job role has increased by almost 30% in 2020 as compared to 2019

Complexity of work performed and increase in demand of domain specific Principal Engineers are recognized as engineering authorities having technical experts has led to increase in demand for Principal Engineers extensive practical experience gained from working as an Engineer and typically answer directly to the senior management of their company Principal Engineer Installed Talent Globally 20% increase in the number of Installed Principal Engineer performs some of the crucial duties that are Talent in 2020 as compared to 2019 132000 Principalrequired Engineer for an Organization performs some to excel of atthe technical crucial level duties that 110000 are required for an Organization to excel at technical level 90000 70000 They are known to handle Challenging Projects that requires the 60000

work of several teams Installed Talent Size Talent Installed

2016 2017 2018 2019 2020 1.They Principaltake Technical Engineers Ownership are of the2. complexPrincipal project Engineers that they have knownin hand to handle take Technical Challenging Projects Ownership of the Principal Engineer Job Postings Globally that requires the work complex project that They amplify the impact by leading various complex software and its of several teams they have in hand 30% increase in demand in 2020 as features by providing Technical Leadership compared to 2019 18200 3. Principal Engineers 14000 amplify the impact by Source: Draup 11000 TheyleadingEducate various other engineers complex both at individual level and at scale 9000 keepingsoftware the engineering and its features community up to date 7600 by providing Technical 4 Leadership

Number of Job Postings Job of Number 2016 2017 2018 2019 2020 Source: Draup Source: Above represented information is fetched from Draup Talent Intelligence Platform, News Articles and Company Press Releases 4 Skills & Workload Analysis: Building Complex Distribution Systems, and Driving System Architecture, and Engineering Methodologies are some of the key responsibilities of Principal Engineer

Principal Engineer – Skills Analysis

Technical Responsibilities Functional Area

• Oversee the product's or project’s conception, design and initial product specifications and manage scheduling, estimating and securing materials Provide engineering guidance to other departments and build high quality, scalable, and • Search and Information Retrieval; Robotics; Security; Hardware; Embedded architecturally sound systems that align with the business needs Systems; Networking; Operating Systems, Cloud, IoT, Testing, Product Design, Establish technical standards and drive system architecture, engineering practices, and • Software development engineering methodologies • Conduct engineering studies and investigations and prepare reports for company leadership

Skills Required

Technical Skills Functional Skills

Large scale systems engineering, building complex distributed systems, Business Analysis, Pricing Strategy, Competitive Analysis, System Architecture, Database handling, Software development Enterprise Resource Planning, Team Management

Agile Management Source: Draup SCRUM, RUP, XP, Product Life Cycle Management

Skill Proficiency Level High Medium Source:Low Draup Note Draup’s proprietary talent module was used to analyse the Job roles, titles and skills 5 Job description comparison across companies: Mid size Retail companies and Start-ups have lower experience requirements for Principal engineer talent compared to large companies

Draup leveraged text mining model to identify the job descriptions at various levels of companies to better position the role level analysis Principal Software Engineer (Job description across various levels of companies)

Stealth Start-up

Analyze, design, code, test, debug, Responsible for various key product maintain, and document software Establish technical standards and drive Design and develop architectures to development including but not limited to components in accordance with the system architecture, engineering handle web-scale data and its Microservice platform, Service Mesh, software architecture and software practices, and engineering methodologies organisation Configuration Management development processes System, GraphQL etc. Job Expertise in high-level architectural design Create high scalable, reliable, resilient Build the process to elicit and specify and build high quality, scalable, and and available big data platform Responsibilities Leads and participates in medium- to large- project requirements and define project architecturally sound systems that align scale, complex, cross-functional projects scope with the business needs Work with engineering leaders in building a high performing engineering Leads the discovery phase of medium to Assist in development of software Lead development life cycle process team and talent large projects application architecture

Thorough DB experience including RDB, Experience with micro-services and other Experience leading the delivery of Experience in software development of NoSQL, Document DB etc. service oriented architectures and design Area’s of services and large-scale distributed large-scale distributed systems methodologies (like BDD/DDD) Experience / systems 7+ years in Java, C++, Golang, Rust, Scala, Technical Skills Experience in data related technologies ReactJS, Node.js experience Experience turning requirements into Agile Management (SCRUM, RUP, XP), required and open source frameworks software design specifications and OO Modeling, Experience with GraphQL Source: Draup architecture

12+ years of experience as a software 10+ years of relevant, broad engineering development engineer in the experience B.S. in Computer Science required or a commercial software industry Qualification 5-7 years of experience in related field combination of equivalent educational 6 experience Bachelor’s degree in computer science or MS degree or PhD degree in CS or math related technical field or Engineering or DS Source: Draup 6 Note: Draup leveraged text mining to identify top skill and responsibilities of the top companies Principal Engineer job roles analysis in Start-ups vs Corporates: Start-ups tend to have a faster career growth compared to the MNC’s. More than 25% of the Principal Engineers in start-ups have 3 – 8 years of experience

Principal Engineering - Professionals Parameters Start-ups Corporates / MNC’s

More than 25% of the Principal Engineer professionals are at Entry/Mid Majority 95% of the Principal Engineer professionals are at Senior level with Experience Level level experience between 3 – 8 Years more than 10 Years of experience

Talent Maturity is high with wider exposure to new-age technologies with high Talent Maturity Talent Maturity is comparatively lower than the professionals at MNC’s professionalism

Circumscribed towards a particular product/service stream with limited Diverse experience/knowledge across various business disciplines and Product Focus opportunities of wider view engineering disciplines

Core Principal Engineer at Start-up companies directly involve in the Principal Engineer at MNC’s Oversee the product's or project’s conception, Responsibilities transformative software development and agile management design initial product specifications

Managerial/ Managerial / Behavioural Skills includes Team Leadership, Managerial / Behavioural Skills includes Team management, Problem-solving Behavioural Skills Analytical/Debugging skills and decision-making skills Michael Hogg Gary Rexford Designation: Principal Engineer Designation: Principal Engineer Company: A start-up in Boston Company: A MNC in Boston Total Years of Experience: 6 Years Total Years of Experience: 26 Years

Sample Profiles • Manage and lead a mechanical development team to ensure the on-time • Lead engineer on new Source:products Draup including system level setup, integration and development of reliable products validation within the NAS and SAN market • Develop validation plans based on analysis, simulation and FMEA to mitigate • Responsible for creating design of experiments for a multitude of hardware, potential risks firmware, protocol, and signal integrity related issues 7 Education Background: (BE) Mechanical Engineering at Western University Education Background: (BE) Electrical Engineering at Rochester Institute

Note : Draup’s proprietary talent module was used to analyse the above represented data’s. Source: Draup Source: Job Descriptions posted by HR professionals at public forums 7 Agenda Pages

4-7 • Job Role Overview: Principal Engineer

1. Principal Engineer - Career Ladder • Career ladder and Job Role Transition analysis 2. Principal Engineer – Job Role 9-11 Transition 3. Job Role Transition Sample Case Study 13-17 • Location intelligence for Principal Engineer talent

Source: Draup

Source: Draup 8 Career Ladder of Principal Engineer: Experienced Engineer (at Level 5) in Retail, can either progress towards Managerial Track or Individual Contributor Track, where he/she can finally become Principal Engineer

Individual Contributor Track Managerial Track (Highly Skilled in technical aspects) (Responsible for managing large teams)

(Computer science gurus who have Distinguished Engineer Engineering VP (Responsible for managing entire imagined, built, and launched multiple Level 8 Level 8 Engineering Teams of the Organization) successful projects)

(Tech Guru responsible for Engineering Manager (Experienced Manager of Principal Engineer Level 7 company wide solutions and strategies) Level 7 Several Engineering Teams)

(Respected Technical lead and Staff Engineer Lead Engineer (Skilled Manager of a mid expert with deep knowledge) Level 6 Level 6 Sized Team)

Senior Engineer Level 5

Engineer Source: Draup Level 4

9 Junior Engineer Source: The analysis is based on Draup’s talent module, internal Level 3 research, customer engagement reports, and industry blogs and Source: Draup 9 whitepapers Principal Engineer – Job Role Transition: Software Development Job Family has seen maximum career transition towards Principal Engineer specific Job Role followed by Hardware, Network Engineering across Industries

Analysed percentage Job Family Job Titles of Transitions across Job Role each job family Software Development Manager Senior DevOps Engineer Software • Principal Cloud Engineer Senior Software Architect Technical Lead – Software Development 39% Development • Principal Software Engineer Senior Software Development Engineer Manager, System Software • Principal Systems Engineer (Highly Relevant for Retail Industry) Senior Cyber Security Engineer Application Development Manager

Senior Mechatronics Manager Senior Mechanical Engineer Hardware 22% • Principal Hardware Engineer Manager, Hardware Engineering Senior Hardware Architect Engineering • Principal Robotics Engineer Senior Robotics Engineer Senior Hardware Design Engineer

Manager of Network Engineering Lead Network Engineer Network 18% Senior Network Engineer Network Architect • Principal Network Engineer Engineering Senior VoIP Solutions Engineer Network Facilities Engineer II

Technical Lead – Embedded Development Senior Electrical Engineer • Principal Engineer Embedded Embedded Software Senior Firmware Manager Embedded Linux Kernel Engineer 12% Engineering • Principal Electrical Engineer Senior Embedded Systems Engineer Senior Imaging Embedded - FW Engineer • Principal Firmware Engineer

Senior Data Architect Senior Research Engineer Source: Draup Lead Infrastructure Engineer Senior Database Engineer Others 9% • Principal Research Engineer (Data, Research, Infrastructure) Senior Process Automation Engineer Senior Geotechnical Engineer 10 Staff Systems Engineer Senior Modelling Lead

Note : Draup analysed 6,000+ profiles from various job families to analyze talent profiles based on past and current designation, location and skills Source: Draup 10 Software Development includes Search and Information Retrieval, Operating Systems, Cyber Security. Hardware Engineering includes robotics. Sample Case Studies – Transition to Principal Engineer Specific Job Roles: Experienced Engineering Talent of different Job families across Industries are transitioning towards Principal Engineer job roles

Draup has analysed over 1,000+ profiles to understand and validate the actual job roles transitions

(Feb 2013 – Sep 2016) (Sep 2016 – Present) (June 2018 – June 2020) (June 2020 – Present)

Staff Software Engineer Principal Software Engineer Robotics Lead Design Engineer Principal Engineer Walmart Walmart Amazon Robotics Berkshire Grey

(July 2012 – October 2015 (October 2015 – Present) (Jan 2019 – Sep 2020) (Sep 2020 – Present)

Technical Architect Consultant Principal Engineer Chief Architect Senior Principal Engineer Target Target LiveRamp Amazon

(April 2012 – June 2013) (July 2013 – Present) (February 2010 – December 2017) (December 2017 – Present) Source: Draup Senior Hardware Engineer Principal Hardware Engineer Senior Research Engineer Principal Research Engineer Cognizant Cognizant Nuance Communications Nuance Communications

Source: Draup 11 Note: Draup’s proprietary talent module was used to analyze talent profiles based on past and current designation, location and skills Agenda Pages

4-7 • Job Role Overview: Principal Engineer

9-11 • Career ladder and Job Role Transition Case Study

1. Principal Engineer – Global Talent Location intelligence for Principal Engineer talent Hotspot analysis 13-17 • 2. Location Deep-dive of Hyderabad, India and Gdansk, Poland 3. Top Hiring Companies and Source: Draupcompensation analysis

Source: Draup 12 Principal Engineer – Global Talent Hotspot: San Francisco Bay Area, Bengaluru, Boston, and Los Angeles are some of the top global locations with high number of Principal Engineer talent pool. Hyderabad and Gdansk, some of the emerging locations for Principal Engineer talent pool, have been analysed in detail

Draup has identified 100+ Principal Engineer Hotbeds across the globe West Coast of NA East Coast of NA Western Europe & Israel Indian Hi-Tech Cities East Asia and Australia The Hague Ottawa Montreal Amsterdam Edinburgh Berlin Calgary Dallas Birmingham Raleigh Munich Denver Luxembourg Frankfurt Paris Stuttgart Cracow Washington DC Gdansk Minneapolis London New York Kiev Vancouver Chicago Cambridge Shenzhen Toronto Manchester Warsaw Seattle Charlotte Prague Chengdu Detroit Bucharest Beijing Atlanta Dublin Portland Boston Tokyo Cleveland Madrid Hangzhou San Francisco Cologne Bologna Nanjing Philadelphia Budapest Delhi NCR Los Angeles Miami Bristol Tel Aviv Milan Guangzhou Nashville Shanghai San Diego Austin Turin Mumbai Taipei Houston Barcelona Chennai Phoenix Pune Metro Manila Bengaluru Mexico City Singapore

Hyderabad Kuala Lampur Sao Paulo Source: Draup Canberra TALENT AVAILABILITY INDEX Perth High >2,000 Melbourne Moderate > 1,000-2,000 Brisbane Hyderabad, India and Gdansk, Poland are 13 Low <1,000 Sydney analyzed further in detail Source: Draup 13 Draup’s proprietary talent module was used to identify hotspots for Principal Engineering Hotspot Location Analysis – Hyderabad, India (1/2): HITEC City and Nanakramguda are the major hotspots in Greater Hyderabad Area with the presence of top companies such as Microsoft, Oracle, Google, Apple and Broadcom Inc

Greater Hyderabad Area, India – Hotspot Talent Availability GEOGRAPHY TOP TECH EMPLOYERS Fresh Talent Oracle, Dell EMC, Broadcom, Microsoft, Qualcomm, Madhapur Talent Quality HITEC City Pegasystems Inc, Hewlett Packard Enterprise, Intel Talent Growth Corporation, Google Median Cost HITEC City Ease of Hiring DBS Bank, CA Technology A Broadcom Company, Nanakramguda – Regulatory Cost Apple Development Center Infrastructure Cost Start up Index Other Hotspot Salesforce, MathWorks, Wells Fargo, AT&T, Intuit Early findings Limited concerns, raise no concerns likely not significant Location Characteristics

Business Considerations Location Attributes

Business costs relative to Population 10 Mn Low Europe average Demographics Annual Population Growth 2.7% Business Cost Rai Durg Effective Corporate tax Nanakramguda rate Medium Cost of living $333/month (Low/Moderate/High) Source: Draup Quality of life Quality of Living Low Real Estate cost $1,136/sq.m Avg. Commute time (One 26 min Commercial Way) Other Hotspot 14 Major Hotspots Real Estate Commercial real estate Gender 9.2% Gender Ratio (M/F) 95:100 vacancy rate Diversity Source: Draup 14 Source: Cushman and Wakefield, Statista website, Numbeo database, Central Statistics Office, Hotspot Location Analysis – Hyderabad, India (2/2): Oracle, Broadcom, Dell EMC, Microsoft, and Amazon are some of the top companies employing a large number of Principal Engineers in Hyderabad

Principal Engineer Median Base Pay in (USD) (Relevant Talent Pool) Top Employers $32,700 Talent Size Common Job Titles Median Talent Cost of a Principal Engineer Principal Software Engineer 300 Principal Applications Engineer Principal Software Quality Assurance Engineer

$37,500 Principal Engineer - IC Design 210 Senior Principal Engineer Senior Principal Software Engineer $23,000 $17,500 Senior Principal Engineer 120 Senior Principal Software Engineer Sr. Principal Engineer, Cloud Enable - IT Architecture Principal Engineer 80 Principal Software Development Engineer Principal Network Engineer Manager

Principal Engineer/Manager 49 Principal Software Engineer/Manager

Top Companies Base Pay Variables Breakup $5,000 $7,000 Median Salary (USD) per annumper (USD) Salary Median $40,000 Source: Draup Principal Engineer $34,540 $7,550 $3,370 Large Scale Mid Scale Small Scale $33,290 $2,840 NA Company Size $30,850 $1,855 $3,180 15 Note: Draup Talent Cost Modular was used to analyse the represented data $50,200 $10,010 $5,025 Note: Bonus and stock options are calculated with respect to the base pay. Total Equity aggregates grant date fair Source: Draup 15 value of stock and option awards and long-term incentives granted during the fiscal year (2019 – 2020) Bonus Equity Hotspot Location Analysis – Gdansk, Poland (1/2): Oliwa and Matarnia are the major hotspot with the presence of top employers such as ADVA, Flex, Spartez, and Intel Corporation in Gdansk Metropolitan Area, Poland

Gdansk Metropolitan Area - Hotspot Talent Availability Fresh Talent GEOGRAPHY TOP EMPLOYERS Osowa Talent Quality Talent Growth Oliwa Median Cost Nordea, Spartez, Alior bank, State Street, Thomson Oliwa Ease of Hiring Reuters, Kemira Regulatory Cost Infrastructure Cost Zaspa Start up Index Matarnia Intel Corporation, ABB, Rockwell Automation

Early findings Limited concerns, raise no concerns likely not significant Matarnia Location Characteristics

Business Considerations Location Attributes

Business costs relative Population 470,900 Moderate to US average Demographics Business Cost Annual Population Growth 1.1% Effective Corporate tax rate Moderate Cost of living $1,960/Month (Low/Moderate/High) Source: Draup Quality of life Quality of Living High Real Estate cost $4,248/ sq.m Avg. Commute time (One Commercial Real 30 min Estate Way) Commercial real estate 16 4.9% vacancy rate Gender Diversity Gender Ratio (M/F) 94:100 Major Hotspots Emerging Hotspots Source: Draup 16 Source: Cushman and Wakefield, Statista website, Numbeo database, Central Statistics Office, Hotspot Location Analysis – Gdansk, Poland (2/2): ADVA, Intel, Flex, and Atlassian are some of the top companies employing a large number of Principal Engineers in Gdansk

Principal Engineer Median Base Pay in (USD) (Relevant Talent Pool) Top Employers $ 78,300 Talent Size Common Job Titles Median Talent Cost of a Principal Engineer Principal Software Engineer 20 Principal Engineer R&D System Principal Application Engineer $102,000 Principal Software Engineer 15 Principal Firmware Engineer $81,000 Principal Engineer Fault Finding 10 – Principal Engineer - Telematics

$52,000 Senior Principal Engineer – Software 10 Principal Software Engineer Principal Java Developer

Top Companies Base Pay Variables Breakup

$106,000 $6,300 NA Median Salary (USD) per annumper (USD) Salary Median $87,300 $4,100 NA Principle Engineer Source: Draup

Large Scale Mid Scale Small Scale $98,100 NA NA Company Size $86,100 NA NA 17

Note: Draup Talent Cost Modular was used to analyse the represented data Bonus Equity Note: Bonus and stock options are calculated with respect to the base pay. Total Equity aggregates grant date fair Source: Draup 17 value of stock and option awards and long-term incentives granted during the fiscal year (2019 – 2020) About Draup

Source: Draup

Source: Draup 18 Draup leverages Machine learning models to perform prior analysis and can replicate it on a broader level for any job roles/skills across business functions

Draup Capabilities & Data Assets EMPOWERS DECISION MAKING IN

LOCATION Location Assessment INTELLIGENCE ROLES & SKILLS Strategic Workforce Planning TAXONOMY DIVERSITY INTELLIGENCE

UNIVERSITY Peer Benchmarking INTELLIGENCE DIGITAL IMPACT ON Explore Diverse University Relations TRADITIONAL ROLES Job Roles, Locations and TALENT Recruitment Ecosystem INTELLIGENCE PEER Insights INTELLIGENCE Compensation & Benefits

Source:Diversity Draup & Inclusion CAREER PATH COURSES/ PREDICTOR CERTIFICATIONS Mergers and Acquisitions 19 and diverse other use cases… Source: Draup 19 Draup for Location Intelligence: Draup analyzes 4,500+ job roles across 2,500+ locations to help companies understand talent ecosystem with insights around talent cost, required skills, job demand, and peers

Source: Draup

Source: Draup 20 Source: Draup www.draup.com [email protected]

SANTA CLARA I HOUSTON I BANGALORE I GURGAON I COIMBATORE I NEMILI 21