Employee Costs of Infosys Technologies and TCS – a Comparison

The annual compensation of Infosys Chairman and Chief Mentor, NR Naryana Murthy, in FY06 was Rs 41.60 lakh while that of CEO, President and Managing Director, Nandan Nilekani, was Rs 41.17 lakh. Tata Consultancy Services (TCS) hiked the total compensation of its CEO and Managing Director, S Ramadorai by 100% to Rs 2.44 crore in FY06.

Annual employee cost for TCS gone up 32% to Rs 5113.96 crore where as it is gone up 34.7% to Rs 3818 crore for Infosys.

The increase in employee costs for Infosys (34.7%) was higher than the increase in compensation for Mr Murthy and Mr Nilekani (30%). The average annual cost per employee works out to Rs 8.14 lakh for TCS and Rs 7.24 lakh for Infosys.

Source: The Financial Express, June 07, 2006

This does not mean that the average salary hike for employees in Infosys and TCS are above 30%. Salary increase might have been around 5-15% and the remaining might be other costs. Employee cost includes basic salary, other benefits, employment taxes, recruiting expenses, cost of operating space, and cost of buying/maintaining equipments and services like computer, telephone, transport, etc.. Read How Much Does An Employee Cost?

1 Comment

  1. hi..interesting article. i am doing some research on infosys and trying to udnerstand how its plan to hire 25k people this year will impact its earnings. wts ur view on the same? do u think infy is going for talent from lower rgade colleges to reduce salary cost? also with heavy investments in training, do u think its margins will suffer?

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