5.4 C
London
Tuesday, December 6, 2022

IT biggies spent 62% of revenue on wages in FY22, salary bill of ₹3 lakh crore

Must read

Real estate decarbonisation startup Accacia raises $2.5 million in launch round

Founded in 2022 by INSEAD alumni Ann Talrejafounders Piyush Chitkara and Jagmohan Garg, Accacia is an AI-enabled SAAS platform that provides decarbonization strategies. ...

Ukrainian drone strikes have hit air bases in Russia. This is what it means.

A blast hit an air base in Russia on Tuesday, the latest in a series of apparent Ukrainian drone strikes that demonstrate their ability...

Telegram Premium Surpasses 1 Million Subscribers • londonbusinessblog.com

Telegram Premium has garnered more than 1 million subscribers less than six months after the popular instant messaging app launched its paid offering and...

Cacheflow doubles valuation and raises $10 million, proving the venture market is far from dead – londonbusinessblog.com

Cache streama startup that builds tools for closing software sales announced this morning that it has closed $10 million in new capital. Cacheflow CEO and...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

  • Indian IT companies have seen their revenues double in the past five years.
  • Top companies like TCS, infosys and wipro have 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.

Salary Cost of IT Companies in FY22https://londonbusinessblog.com/ India / Flourish

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%.

IT biggies spent 62% of revenue on wages in FY22, salary bill of ₹3 lakh crore
Average IT Salary to Revenue Ratio Between FY18 and FY22https://londonbusinessblog.com/ India / Bloom


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.

IT biggies spent 62% of revenue on wages in FY22, salary bill of ₹3 lakh crore
Salary vs Revenue Growth Between FY18 and FY22https://londonbusinessblog.com/ India / Bloom

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.

IT biggies spent 62% of revenue on wages in FY22, salary bill of ₹3 lakh crore
Total IT Company Revenue and Salary Cost Between FY18 and FY22https://londonbusinessblog.com/ India / Bloom



ALSO SEE:

Rupee at 80: This is how a falling rupee could affect India’s current account deficit

L&T CMD SN Subrahmanyan’s salary doubles after pandemic austerity, but Naik’s salary remains the same

Decoded: How the Rupee’s Trading Scheme Is Linked to India’s Trade Deficit and Forex Reserves

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Real estate decarbonisation startup Accacia raises $2.5 million in launch round

Founded in 2022 by INSEAD alumni Ann Talrejafounders Piyush Chitkara and Jagmohan Garg, Accacia is an AI-enabled SAAS platform that provides decarbonization strategies. ...

Ukrainian drone strikes have hit air bases in Russia. This is what it means.

A blast hit an air base in Russia on Tuesday, the latest in a series of apparent Ukrainian drone strikes that demonstrate their ability...

Telegram Premium Surpasses 1 Million Subscribers • londonbusinessblog.com

Telegram Premium has garnered more than 1 million subscribers less than six months after the popular instant messaging app launched its paid offering and...

Cacheflow doubles valuation and raises $10 million, proving the venture market is far from dead – londonbusinessblog.com

Cache streama startup that builds tools for closing software sales announced this morning that it has closed $10 million in new capital. Cacheflow CEO and...

Infrastructure monitoring startup Trendspek saves $6.3 million in Series A

Trendspek, the Sydney-based real asset modeling software startup, has raised $6.3 million in a Series A. Real Estate Technology VC Taronga Ventures led the raise...