Infosys, the country's second-largest software services company, reported a marginal dip in employee expenses. However, the fact that employee costs still make up for more than 60% of total expenses during times of cost pressures, is worrying for information technology firms. This shows that while firms have stopped campus recruits to clamp down on expenses, lateral hiring from the market at a 30% hike remains the norm, and retention is difficult.
According to a Mint analysis, TCS's wage costs constituted 77.4% of total expenditure, while HCL Technologies allocated 69.6% to wage costs. Infosys saw wage costs at 68% of total expenditure, down from the peak of 68.4% in the June quarter.
This story is from the October 16, 2023 edition of Mint Mumbai.
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This story is from the October 16, 2023 edition of Mint Mumbai.
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