- Indian IT companies have seen their revenues double in the past five years.
- Top companies like
TCS, infosysand wiprohave been consistent in how much they pay their employees, while the smaller ones have paid more to retain or attract talent.
- TCS, Infosys, Wipro and other Indian IT companies have paid nearly ₹12 lakh crore in salaries over the past five years
- Here’s how the revenue and salary costs of these IT companies have evolved over the past five years:
India’s IT sector has seen an unprecedented boom over the past five years – something few industries can boast of. However, salaries absorb more than half of the revenues these IT companies earn.
Lucrative jobs and salary increases have attracted a large number of people to the largest IT service companies such as TCS, Infosys and Wipro.
According to research by https://londonbusinessblog.com/ India, IT companies paid a whopping 62% of their revenues as salaries in FY22. L&T Infotech was the most generous this year, along with sister company Mindtree, while Tech held Mahindra a lot tighter to its wallet.
Over the past five years, giants like TCS, Infosys and Wipro have kept their salary outflows at an average of 53-55%, while smaller players like L&T Infotech (LTI) and Mindtree have paid the most, between 60-63%. Again, HCL Tech and Tech Mahindra (TechM) came out the most stingy, with an average outflow of just 51%.
Interestingly, Infosys, TechM and Mindtree managed to lower the salary-to-sales ratio over these five years, while TCS, Wipro, HCL Tech and LTI ultimately realized higher salary growth compared to revenue.
Essentially, what this means is that while all IT companies managed to grow their revenues as of FY18, only a few of them were able to keep their payroll costs under control.
Higher growth in payroll costs compared to revenue means companies paid more to retain existing talent or hire new ones.
In total, these seven IT companies earned almost ₹5.5 lakh crore in revenue in FY22, and paid ₹3 lakh crore in salary. In total, these companies earned almost ₹22 lakh crore and paid almost ₹12 lakh crore in salary over the past five years.
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