Monday, June 04, 2007

Revenue generation: US techies on top

A highly skilled and cost-effective workforce may be a major driver behind India's emergence as the global back-office of IT industry, but it still has miles to go before it catches up with global giants in terms of productivity.

A comparison of revenue contribution by employees of top five players in India and the US in this space shows that an American IT professional contributes nearly ten times higher to the company's turnover than his Indian counterpart.

Among the top five Indian IT firms -- TCS, Infosys, Wipro, Satyam Computer and HCL Tech -- TCS is the biggest in terms of annual revenue, but Azim Premji-led Wipro steals the show in terms of revenue per employee.

But even Wipro's per employee revenue of just over 51,000 dollars gets dwarfed when compared to the Fortune 500-listed IT companies in the US, where an employee contributes at least 1,00,000 dollars to the company's annual turnover.

The figure for TCS stood at close to 48,000 dollars, with annual turnover of 4.3 billion dollars and head count of over 89,400 employees at the end of last fiscal.

Wipro had annual revenues of 3.5 billion dollars and total head count of over 67,800 people last year.

Infosys' per employee contribution was close to 43,000 dollars with total revenue of 3.1 billion dollars and over 72,200 employees.

The average revenue per employee (ARPE) of the five largest IT earners in India stood at 42,000 dollars last fiscal year, against 4,10,000 dollars in the top five in the US -- HP, IBM, Dell, Sun Microsystems and EDS.

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