{"id":747,"date":"2007-05-14T21:40:14","date_gmt":"2007-05-14T16:10:14","guid":{"rendered":"http:\/\/www.chiragmehta.info\/chirag\/2007\/05\/14\/the-linearity-of-revenues-and-headcount-for-it-industry\/"},"modified":"2007-05-14T21:41:14","modified_gmt":"2007-05-14T16:11:14","slug":"the-linearity-of-revenues-and-headcount-for-it-industry","status":"publish","type":"post","link":"https:\/\/www.chiragmehta.info\/chirag\/2007\/05\/14\/the-linearity-of-revenues-and-headcount-for-it-industry\/","title":{"rendered":"The linearity of revenues and headcount for IT Industry"},"content":{"rendered":"<p align=\"left\">One bugbear faced by TCS and most of its Tier-I peers is what the IT industry nattily calls &#8216;the linearity of revenues and headcount&#8217;. In plainspeak, it means that<em><strong> revenue growth for companies such as TCS, Infosys and Wipro has become synonymous with employee addition<\/strong><\/em>. In TCS, for example, revenues moved up from Rs 9,727 crore in 2004-05 to Rs 18,685 crore last financial year &#8212; a 92 per cent jump. Headcount, meanwhile, has almost doubled from 45,714 to 89,419 employees.<\/p>\n<p align=\"left\">S. Ramadorai, a TCS lifer and CEO &#038; MD for 11 years, concedes that breaking this linearity is an important issue for the company. &#8220;<em>We never wanted headcount and revenues to be linear<\/em>. So, if we look at the number of people we had when we were a billion in revenues and the number of people we have now at $4.3 billion, <em>you will see that the ratio has changed<\/em>,&#8221; says Ramadorai who adds that the <strong>company&#8217;s focus on R&#038;D <\/strong>will eventually help it break the linearity.<\/p>\n<p align=\"left\">&#8220;So, the question we continue to ask ourselves is, &#8216;when we achieve $10 billion or $6 billion, should it be on the current ratio of headcount?&#8217; And I believe it will be achieved more efficiently,&#8221; he says.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One bugbear faced by TCS and most of its Tier-I peers is what the IT industry nattily calls &#8216;the linearity of revenues and headcount&#8217;. In plainspeak, it means that revenue growth for companies such as TCS, Infosys and Wipro has become synonymous with employee addition. In TCS, for example, revenues moved up from Rs 9,727 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[8,16],"class_list":["post-747","post","type-post","status-publish","format-standard","hentry","tag-india","tag-tcs-competitor-it-news","post-preview"],"_links":{"self":[{"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/posts\/747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/comments?post=747"}],"version-history":[{"count":0,"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/posts\/747\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/media?parent=747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/categories?post=747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chiragmehta.info\/chirag\/wp-json\/wp\/v2\/tags?post=747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}