Revenue per employee, for firms such as Infy and TCS, has declined to 40,000-odd levels from around $50,000 even an year ago
Revenue per employee, a key metric to measure productivity, for top tech firms such as Infy and TCS has taken a sharp plunge to $40,000-odd levels from around $50,000 even an year ago. However, firms such as Cognizant and Wipro have been able to better handle the slide or have even seen a modest growth as they have either ramped up revenues or managed hiring plans efficiently, which experts term as a tactical 'master-stroke' in hindsight.
A snap-shot analysis of the revenue per employee across last four quarters from January-March 2008 and the same period in 2009 shows that TCS — which employs the largest IT workforce in the country — has also seen the sharpest drop of $13,423 to $41,832 per worker. For Infy, it has dropped by $7,685 to $43,130 considering the total headcount. Both firms added roughly 11,000 to 23,000 employees based on headcount given at the end of each quarter in those 12 months, with TCS adding over 12,000 employees by acquiring Citigroup BPO division, data shows. At the same time, these 2 firms witnessed revenues slump by $21 million to $80 million in the same period on a year-on-year basis as slowdown kicked in.
A better-utilised and optimal workforce has helped firms such as Wipro and Cognizant to absorb dip in work volumes and keep margins intact, experts point out. Though the other tier-I companies have seen their revenue per employee shrink, the least impact has been on Wipro, which has seen revenue per employee decline by merely $1090 to $42,962 even though its average headcount is close to 1 lakh. Cognizant, in fact, has seen annualised average revenue per employee increase by $2,218 to $47,587 with around 63,000 staffers.
Source: The Times of India (
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