There is a remarkable improvement in the IT sector as three of India’s top five IT outsourcing firms have managed to increase their revenue per employee in the post-pandemic era.
Revenue Update For The Employees Of Indian IT Majors
This change is majorly driven by the reduced hiring, increased automation, and a surge in third-party software licence sales.
The news comes during a time when global macroeconomic headwinds dampen tech spending by Fortune 500 companies.
A recent analysis of company filings indicates that the technology major, Tata Consultancy Services Ltd (TCS), Infosys Ltd and HCL Technologies Ltd (HCLTech) reported a notable uptick in business per employee in the last financial year.
In the case of TCS, the firm witnessed its revenue per employee, reaching $49,902, Infosys $60,164, and HCLTech $61,388.
These figures indicate an increase of 4.91%, 5.79%, and 1.02%, respectively, from FY22.
Contrary to this, the company’s peers Wipro Ltd and Tech Mahindra Ltd witnessed a decline in this metric over the same period, reportedly.
Marking A Slowdown In Hiring
Wipro’s revenue per employee saw a decline to $45,118 from $46,983, while Tech Mahindra’s fell to $42,585 from $44,065.
On the other hand, Infosys, India’s second-largest IT services provider, recorded the biggest jump in per-employee revenue since FY22 where each employee contributed an additional $3,295.
During this period, HCLTech, the third-largest, saw the slowest increase, at $618 per employee.
According to the analysts, the increased productivity at the three companies coincides with a marked slowdown in hiring.
The factors such as global uncertainties, trade tensions, and geopolitical conflicts have prompted major corporations to curb their technology expenditures further leading to reduced demand for IT services and, consequently, less recruitment by outsourcing giants.
In the meantime, India’s largest IT outsourcers continued to expand their headcount until FY23 but hiring has decelerated significantly thereafter.
The TCS, Infosys, HCLTech, Wipro, and Tech Mahindra have collectively cut their workforce by 57,891 employees over the period of the past two years.
Out of these, Bengaluru-based Wipro generates the lowest revenue per employee among the top four but it was responsible for the largest portion of these job cuts.
