You are here: Home » Economy & Policy » News
Business Standard

US IT professionals ten times more productive than Indians

Press Trust Of India  |  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 and head count of over 89,400 employees at the end of last fiscal. Wipro had annual revenues of $3.5 billion 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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, May 21 2007. 00:00 IST