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Why tech workers are earning less for their employers

Livemint · 6m

The revenue contributed by each employee in top IT services companies such as TCS, Infosys, Wipro, HCL Technologies, Accenture, and Cognizant has been steadily declining since the end of the COVID-19 pandemic. The increase in offshoring and preference for the offshoring model by clients has led to lower billing per employee and subsequently reduced revenue. HCL Tech witnessed the highest Revenue Per Employee (RPE) at $58,532 but also saw the steepest drop of 12.5%. Infosys, on the other hand, reported a 3% increase in RPE. The impact of offshoring has also affected foreign companies like Accenture, which experienced a 3% decline in RPE between FY19 and FY23. Profitability per employee has also decreased for most companies except for Accenture. Wipro experienced the largest drop in profitability per employee due to lower margins after the acquisition of Capco. The depreciation of the Indian rupee against the US dollar did not aid profitability either.