While Wipro's per employee revenue is $51,000, an employee of IT companies in the US contributes at least $1,00,000 to the company's annual turnover.
NEW DELHI: 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 a 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.
Each employee brings in a whopping 5,87,555 dollars at Hewlett Packard (HP), which recorded over 91.6 billion dollars in revenue last year with a total head count of 1,56,000 employees.
Incidentally, US giants like HP, IBM and Dell have a significant portion of their head count in India.
The market observers believe that factors like high attrition rates of over 12 per cent and under-utilisation of resources are acting as a major hurdle to achieve high employee productivity for Indian firms.
In the US, California-based HP is followed by IBM at the second position with 91.4 billion dollars of revenue, which results in ARPE of about 2,57,000 dollars with 355,766 employees.
World's second largest PC maker Dell occupies the third position with revenue of over 57 billion dollars and has managed ARPE of over 6,93,000 dollars with a total of 82,290 employees last year.
Even the fourth and fifth highest earners -- Texas-based Electronic Data Systems (over 21 billion dollars) and Sun Microsystems (13 billion dollars) have each employee contributing about 1,63,000 dollars and 3,44,000 dollars respectively.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}