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Employee Costs in Software Industry

The document contains financial data for several Indian IT companies from fiscal years 2001-2007 showing employee costs as a percentage of sales. TCS had employee costs ranging from 15-41% of sales while Infosys ranged from 17-51%. Wipro was higher at 32-58% and HCL and Satyam were also generally higher than TCS and Infosys, ranging from 46-59%. The data indicates that employee costs as a percentage of sales increased over time for these companies.

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297 views7 pages

Employee Costs in Software Industry

The document contains financial data for several Indian IT companies from fiscal years 2001-2007 showing employee costs as a percentage of sales. TCS had employee costs ranging from 15-41% of sales while Infosys ranged from 17-51%. Wipro was higher at 32-58% and HCL and Satyam were also generally higher than TCS and Infosys, ranging from 46-59%. The data indicates that employee costs as a percentage of sales increased over time for these companies.

Uploaded by

api-3702531
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLS, PDF, TXT or read online on Scribd

EMPLOYEE COST AS %AGE ON SALES TCS Infosys Wipro HCL Satyam

FY 01-02 15.0% 32.3% 46.5%


FY 02-03 46.3% 17.1% 43.5% 48.2%
FY 03-04 50.5% 19.7% 44.7% 52.5%
FY 04-05 23.4% 49.6% 40.8% 45.4% 57.5%
FY 05-06 35.6% 50.4% 41.4% 46.3% 58.5%
FY 06-07 41.4% 51.2%
FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07
Revenue 31,910.7 42,740.2
Growth 33.9%

Employee cost 12,704.3 18,828.2


Growth 48.2%
Margin 39.8% 44.1%
in cr Mar '05 Mar '06 Mar '07
Revenue 9,748.5 13,252.2 18,685.2
Growth 35.9% 41.0%

Salaries, wages and bonus 1,934.3 4,222.4


Cont to :
PF 93.3 112.3
Superannuation fund 63.0 22.7
Employees state insurance scheme 8.2 0.2
Gratuity 47.3 32.2
Social security & other benefits plans 123.8
Staff welfare exp 136.7 206.7
Total 2,282.8 4,720.2 7,743.3
Growth 106.8% 64.0%
%age of sales 23.4% 35.6% 41.4%
in cr Mar '02 Mar '03 Mar '04 Mar '05 Mar '06 Mar '07
Revenue 3,640.0 4,853.0 7,129.7 9,521.0 13,893.0
Growth #DIV/0! 33.3% 46.9% 33.5% 45.9%

Software development
Salaries & bonus 1,436.8 2,079.6 3,025.5 4,129.0 6,071.0
Staff welfare 8.0 13.5 22.1 33.0 46.0
Cont to PF and other funds 32.5 51.6 81.5 92.0 154.0
- 1,477.4 2,144.7 3,129.1 4,254.0 6,271.0
Growth #DIV/0! 45.2% 45.9% 36.0% 47.4%
%age of sales #DIV/0! 40.6% 44.2% 43.9% 44.7% 45.1%

Selling and marketing exp


Salaries & bonus 145.3 216.5 276.7 366.0 552.0
Staff welfare 0.6 0.8 0.6 2.0 3.0
Cont to PF and other funds 1.3 1.8 1.7 1.0 3.0
- 147.3 219.0 279.0 369.0 558.0
Growth #DIV/0! 48.7% 27.4% 32.3% 51.2%
%age of sales #DIV/0! 4.0% 4.5% 3.9% 3.9% 4.0%

General and admin exp


Salaries & bonus 58.0 81.9 122.3 169.0 271.0
Staff welfare 0.0 0.3 0.9 1.0 -
Cont to PF and other funds 3.6 5.0 7.8 8.0 12.0
61.6 87.2 131.0 178.0 283.0
Growth #DIV/0! 41.6% 50.2% 35.9% 59.0%
%age of sales #DIV/0! 1.7% 1.8% 1.8% 1.9% 2.0%

Total employee cost - 1,686.3 2,451.0 3,539.1 4,801.0 7,112.0


Growth #DIV/0! 45.3% 44.4% 35.7% 48.1%
%age of sales #DIV/0! 46.3% 50.5% 49.6% 50.4% 51.2%
in millions Mar '02 Mar '03 Mar '04 Mar '05 Mar '06
Revenue 34,405.1 42,865.5 58,350.2 81,605.6 106,029.2
Growth 24.6% 36.1% 39.9% 29.9%

Employee compensation costs in


Cost of goods sold 4,180.0 5,802.2 9,285.7 29,139.9 38,183.5
Selling & marketing exp 974.3 1,518.0 2,195.1 2,625.5 3,507.5
General & adm exp 1,568.4 2,155.0
Total 5,154.3 7,320.2 11,480.8 33,333.8 43,846.0
Growth 42.0% 56.8% 190.3% 31.5%
%age of sales 15.0% 17.1% 19.7% 40.8% 41.4%
in crores June '02 June '03 June '04 June '05 June '06
Revenue 1,609.9 2,143.5 2,563.7 3,351.2 4,571.6
Growth 33.1% 19.6% 30.7% 36.4%

Salaries, wages and bonus 469.9 850.1 1,031.8 1,351.3 1,805.0


Contribution to provident and other funds 41.9 67.9 98.4 140.9 211.6
2.5 48.4
Staff welfare expenses 7.5 13.5 15.9 28.2 52.7
Total 519.3 931.5 1,146.1 1,522.9 2,117.7
Growth 79.4% 23.0% 32.9% 39.1%
%age of sales 32.3% 43.5% 44.7% 45.4% 46.3%
in millions Mar '02 Mar '03 Mar '04 Mar '05 Mar '06
Revenue 19,668.1 22,219.6 25,604.9 35,208.5 47,925.9
Growth 13.0% 15.2% 37.5% 36.1%

Personnel exp 9,137.7 10,703.3 13,455.1 20,261.1 28,047.0


Growth 17.1% 25.7% 50.6% 38.4%
%age of sales 46.5% 48.2% 52.5% 57.5% 58.5%

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