The big news that non-Indian employees from Infosys, working outside India are becoming crorepatis at an incredible pace. Compared to FY2017, 340% more non-Indian employees become crorepatis inside Infosys.
This is actually incredible, because of two reasons:
- Indian employees in Infosys too became crorepatis, but that increase happened at 100% growth rate, compared to 340% growth of non-Indian employees
- Infosys has no money to increment the salaries of their existing senior employees. And this is worrisome.
Now, the big question: Why is this happening?
Non-Indian Crorepatis In Infosys Increase By 340%
ET has accessed some confidential data related with the company’s finances for FY2019, and some shocking details have emerged.
Non-Indian Infosys employees, who are working outside India, have become crorepatis at a faster pace, compared to Indian employees, working in India.
As per the data, during FY2019, total of 2200 employees become crorepatis who are outside India.
In FY2017, there were only 500 crorepati employees outside India, and this means an insane growth of 340% in two years.
In FY2017, there were total of 1700 crorepati employees in Infosys (inside and outside India)
Now, take this data with a pinch of salt, because the number can be more.
ET couldn’t access data of 1700 Infosys employees working in the European offices, due to the European Union’s General Data Protection Regulation (GDPR).
Who Are These Employees Outside India Becoming Crorepatis?
As per the data accessed, most of these overseas employees from Infosys becoming crorepatis are those firms which Infosys acquired in the last few years.
For example, Paul Haines, who was previously director of Noah Consulting, which Infosys acquired, and is now part of Infosys Consulting.
He earned Rs 6.19 crore in FY2019.
Similarly, John Brizzi, vice-president and partner at Infosys Consulting made Rs 5.7 crore.
Besides these, there are 5 other Noah Consulting members, who are included in the top 10 earners in Infosys.
Stewart Nelson and Shannon Tassin both were Noah Consulting Directors are right now in the top 10 list of highest earners in Infosys.
CEO Vishal Sikka has already declared that Infosys will hire 10,000 US employees, and since 2017, Infosys has hired 9100 employees.
What Is The Price Which Infosys Is Paying For This?
Infosys hiring US employees, and making them crorepatis at a fast pace is a good news. But the bad news is the price which Infosys is paying for this US-centric growth.
As we reported last week, Infosys has stopped salary hike of more than 25% of senior employees in India, as they are looking to save money.
Save money for fueling their US centric growth!
Besides this, the company has also slowed down their growth projections. Infact, in the last one year, the margin target has been cut twice: Now, the company expects a margin of 21-23% for FY2020, compared to 22-24% projected earlier.
Can automation and robotics help Infosys to save more money? But then, it will mean laying off employees.
Is this turning into a Catch-22 situation for Infosys?
We will keep you updated, as we receive more updates.