Revenue per employee picks up at TCS, Infosys and Wipro
MUMBAI/BANGALORE: Revenue per employee of tech powerhouses is beginning to pick up after nearly a year, an upshot of these companies going against the grain and chasing business resolutely with minimal hiring at a time when the overall employment picture is rosy.
Tata Consultancy Services, Infosys Technologies and Wipro Technologies, long used to an annual revenue growth of up to 30%, are scrambling to arrest their linear, or employee-led, growth riding on a host of initiatives such as cloud computing and using the same set of solutions for multiple customers. Their aim: to serve more customers and handle higher volumes of projects with existing manpower.
Together, the three companies employ more than 300,000 staff. Pursuing a non-linear growth now tops their to-do list.
Infosys started seeing a remarkable improvement in employee productivity in the quarter to end-September last year for the first time since the recession. The country’s second-biggest software exporter’s revenue per employee grew to $44,097 and now stands at $46,352.
Likewise, revenue per employee of larger rival TCS rose during the same period last year to $43,379, after dropping to a low of $41,499 during the first quarter.
Tata Consultancy Services, Infosys Technologies and Wipro Technologies, long used to an annual revenue growth of up to 30%, are scrambling to arrest their linear, or employee-led, growth riding on a host of initiatives such as cloud computing and using the same set of solutions for multiple customers. Their aim: to serve more customers and handle higher volumes of projects with existing manpower.
Together, the three companies employ more than 300,000 staff. Pursuing a non-linear growth now tops their to-do list.
Infosys started seeing a remarkable improvement in employee productivity in the quarter to end-September last year for the first time since the recession. The country’s second-biggest software exporter’s revenue per employee grew to $44,097 and now stands at $46,352.
Likewise, revenue per employee of larger rival TCS rose during the same period last year to $43,379, after dropping to a low of $41,499 during the first quarter.
“Over the last 12 quarters, there have been changes in productivity because employee bench and employee churn have come down,” said Alok Shende, principal consultant at technology research firm Ascentius Consulting.
“Then there are fundamental productivity improvements because of which the same process can be done with fewer employees,” added Mr Shende.
With clients now demanding more for less, the battle has in many ways now shifted to how much more revenue a company can make per employee.
The top three companies apart, a similar trend is playing out for Cognizant Technology Solutions, the fourth-biggest IT player, too during the last 12 quarters that encompasses the pre-slowdown phase, slowdown phase and the ongoing recovery phase.
To smoothen out differences between quarters based on hiring by individual companies, only the March quarter, when typically there is little action, has been considered and revenues annualised. This figure is divided by the average employee base at the end of fiscal 2010 to arrive at the revenue per employee.
“Then there are fundamental productivity improvements because of which the same process can be done with fewer employees,” added Mr Shende.
With clients now demanding more for less, the battle has in many ways now shifted to how much more revenue a company can make per employee.
The top three companies apart, a similar trend is playing out for Cognizant Technology Solutions, the fourth-biggest IT player, too during the last 12 quarters that encompasses the pre-slowdown phase, slowdown phase and the ongoing recovery phase.
To smoothen out differences between quarters based on hiring by individual companies, only the March quarter, when typically there is little action, has been considered and revenues annualised. This figure is divided by the average employee base at the end of fiscal 2010 to arrive at the revenue per employee.
0 comments:
Post a Comment