Indianapolis may not be the first place that comes to mind when you think of major U.S. tech hubs, but the Midwest city is rapidly emerging as a center of gravity for high-paying technology careers. With a surging tech startup scene, a deep pool of skilled talent, and a much lower cost of living compared to coastal markets, Indy is becoming an increasingly attractive destination for tech professionals seeking opportunity without the hefty price tag.
The Rise of Indy‘s Tech Scene
Formerly known primarily as a manufacturing and logistics hub, Indianapolis has reinvented itself in recent years as a hotbed of technology and innovation, earning it the moniker "Silicon Prairie." The tech industry has become a major engine of economic growth for the region, accounting for over 60,000 jobs and $15.6 billion in annual economic impact, according to TechPoint, a nonprofit organization promoting the growth of Indiana‘s tech ecosystem.
Several factors are fueling the rapid expansion of Indy‘s tech sector:
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Business-friendly environment: Indiana boasts a pro-business regulatory climate, with competitive tax rates, streamlined permitting processes, and strong incentives for companies to locate and expand in the state. In 2022, CNBC ranked Indiana #1 in the nation for cost of doing business and #6 for business friendliness.
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Skilled talent pipeline: Indianapolis is home to several top-tier universities producing a steady stream of skilled tech graduates, including Purdue University, Indiana University, Rose-Hulman Institute of Technology, and the Indiana Institute of Technology. The city‘s central location and high quality of life also make it an attractive spot for tech talent from across the Midwest.
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Thriving startup ecosystem: Indy has a vibrant and growing startup community, supported by a network of incubators, accelerators, and co-working spaces like High Alpha, Anvl, and The Union 525. In 2021, Indianapolis startups raised over $365 million in venture capital funding, an all-time high for the region according to TechPoint.
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Industry diversity: While Indy is perhaps best known for enterprise software (Salesforce has its second-largest office in the city), the tech sector is highly diversified, with significant clusters in marketing technology, cybersecurity, healthcare IT, sports technology, and more. Major players with offices in the area include Angie‘s List, Appirio, Genesys, Infosys, and Raytheon Intelligence & Space.
Indy‘s Hottest Tech Jobs and Salaries
So which tech occupations are in highest demand and command the biggest paychecks in Indianapolis? According to data from the Bureau of Labor Statistics and job search site Indeed, here are some of the top-paying tech roles in the Indy metro area as of May 2022:
| Occupation | Average Salary | Salary Range |
|---|---|---|
| Software Engineer/Developer | $98,570 | $68,000-$145,000 |
| DevOps Engineer | $125,330 | $95,000-$155,000 |
| Cloud Architect/Engineer | $136,140 | $105,000-$180,000 |
| AI/Machine Learning Engineer | $129,780 | $95,000-$185,000 |
| Data Scientist | $112,560 | $85,000-$160,000 |
| IT Manager/Director | $127,250 | $90,000-$185,000 |
| Information Security Analyst | $102,580 | $60,000-$145,000 |
| Database Administrator | $96,850 | $60,000-$140,000 |
| Network Engineer | $91,250 | $60,000-$130,000 |
| UX Designer | $98,760 | $65,000-$140,000 |
Source: Indeed Salary Data for Indianapolis Metro Area, May 2022
As the data shows, tech salaries in Indianapolis are highly competitive, especially when adjusted for the city‘s below-average living costs. According to the Missouri Economic Research and Information Center, Indianapolis‘ cost of living is nearly 10% below the national average, and 21% below the average for major tech hubs like San Francisco, Seattle and Boston.
"Indianapolis offers an unbeatable combination of affordability and opportunity for tech workers," said Mike Langellier, President and CEO of TechPoint. "Not only can you command a six-figure salary in many tech roles, but your paycheck goes a lot further here in terms of housing, entertainment, and overall quality of life."
The Skills Driving Indy‘s Tech Boom
In addition to traditional software development and IT roles, Indianapolis‘ unique mix of industries is driving demand for specialized skill sets, including:
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Marketing Technology: Indianapolis has a long history as a hub for marketing and advertising agencies, and many of these firms are now heavily investing in marketing automation, customer data platforms, and other technologies to help clients deliver more personalized experiences. Companies like Salesforce, Terminus, and 6sense are hiring for roles in digital marketing, marketing analytics, and product management.
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Cybersecurity: With major players like Raytheon, Rolls-Royce and Eli Lilly headquartered in the area, Indianapolis has a significant concentration of firms in the defense, aerospace, and life sciences industries, all of which have stringent cybersecurity requirements. The Indiana National Guard also recently launched a new cybersecurity battalion headquartered in Indianapolis. Roles like security analyst, security engineer and cybersecurity consultant are in high demand.
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Healthcare IT: Indiana is home to large health systems like IU Health and Ascension St. Vincent, as well as pharmaceutical giants like Eli Lilly and Roche Diagnostics. These organizations are investing heavily in digital health technologies, driving demand for skills in areas like electronic health records (EHR), clinical informatics, and healthcare analytics. Companies like Springbuk, Apexian Pharmaceuticals, and hc1 are hiring for roles in health data science, bioinformatics, and medical software engineering.
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Sports Technology: Known for events like the Indianapolis 500 and NCAA basketball championships, Indy has a thriving sports industry supported by a growing cluster of sports tech startups. Companies like Upper Hand and Synapse are developing software solutions for sports organizations in areas like coaching, scouting and athletic performance, spurring demand for skills in mobile app development, data analytics and computer vision.
Launching Your Tech Career in Indy
In addition to hiring experienced technologists, Indianapolis tech companies are also eager to recruit and develop entry-level talent. Many firms have established partnerships with local universities to create internships, apprenticeships and training programs designed to nurture the next generation of tech leaders.
Rose-Hulman Institute of Technology, a private college located about an hour west of Indianapolis in Terre Haute, Indiana, is one of the top undergraduate engineering schools in the country. The school boasts a 99% job placement rate within six months of graduation, with many graduates landing high-paying software development and engineering roles in the Indianapolis area.
Other Indy-area schools like IUPUI, Butler University and the University of Indianapolis offer degree and certification programs in computer science, data analytics, cybersecurity and health informatics, providing a steady stream of skilled tech talent to the region‘s employers.
"Indianapolis is an incredibly welcoming and collaborative tech community," said Cynthia Pizarro, a software engineer who moved to Indy from the San Francisco Bay Area in 2020. "If you‘re willing to work hard and contribute, you‘ll find no shortage of opportunities to grow your skills and advance your career here."
Living the Good Life in Indy
Of course, salary is just one factor to consider when choosing where to build your tech career. But Indy offers many of the lifestyle perks of larger cities at a much more manageable cost.
The median home price in the Indianapolis metro area is just $262,000 according to the Indiana Association of Realtors, compared to $1.3 million in San Francisco and $662,000 in Seattle. Renters also fare far better in Indy, with median rents 34% below the national average as of March 2023 according to Zillow data.
Lower costs and shorter commutes mean Indy tech workers have more time and disposable income to enjoy the city‘s vibrant cultural and recreational offerings. Downtown Indy boasts world-class museums like the Indianapolis Museum of Art at Newfields, the Eiteljorg Museum of American Indians & Western Art, and The Children‘s Museum of Indianapolis (the largest of its kind in the world).
The city is also renowned for its thriving food scene, with acclaimed eateries like Milktooth, Bluebeard and Beholder drawing national attention. And for outdoor enthusiasts, Indianapolis offers over 200 parks and green spaces, including the 8-mile Indianapolis Cultural Trail connecting downtown with popular neighborhoods like Mass Ave and Fountain Square.
"Indianapolis is large enough to offer big-city amenities, but small enough to actually afford them," said Kirk Hawkins, Director of Career Services at Rose-Hulman. "For tech workers seeking a balanced lifestyle along with a challenging, high-paying job, Indy really offers the best of both worlds."
Betting Big on Indy Tech
With its unique combination of industry strengths, affordability and Midwestern charm, it‘s no surprise that Indianapolis is attracting attention from tech workers and employers alike. Several notable tech companies have recently expanded their presence in the city, including:
- Salesforce, which opened a new regional headquarters in Indy in 2021, with plans to add 500 new jobs by 2026
- Infosys, which launched a 100-acre U.S. Education Center in Indianapolis in 2021 to provide training in AI, machine learning, cloud computing and more
- Easterseals Crossroads, which opened a new 40,000-square-foot assistive technology center in Indy to support people with disabilities
State and local officials are also betting big on the future of Indy tech. In 2022, Governor Eric Holcomb allocated $500 million to programs designed to boost Indiana‘s technology and innovation economy, including a new $300 million investment fund to support high-growth Indiana startups.
As Mitch Frazier, CEO of TMap, an Indy-based software startup, put it: "We believe Indianapolis has the potential to become the Silicon Valley of the Midwest. With our deep talent pool, thriving startup scene and unbeatable quality of life, we‘re just scratching the surface of what‘s possible here."
For tech workers seeking high-paying, high-impact jobs without the high costs and hassles of larger markets, Indianapolis is quickly becoming the destination of choice. Will you be part of Indy‘s next wave of tech trailblazers?
