India’s IT majors face a challenge of employee productivity says an article in the Economic Times. The Big 3, TCS, Infosys & Wipro added as many as 57,554 people in 2007.

However, rising staff costs and the appreciation of the rupee, amongst other factors, have affected their average employee productivity. As far as turnover per employee is concerned, only Wipro showed an improved performance from the same period last year.

The average turnover per employee for the 3 companies dropped marginally to Rs 5.75 lakh in the October-December 2007 quarter, from Rs 5.79 lakh in the year-ago period.
Wipro’s average turnover per employee rose to Rs 6.80 lakh in the third quarter of this fiscal, from Rs 6.13 lakh in the year-ago quarter. However, TCS and Infosys recorded a dip in their average per employee turnover to Rs 5.58 lakh and Rs 4.99 lakh, from Rs 5.85 lakh and Rs 5.35 lakh respectively.

The average per employee net profit of the three companies also declined to Rs 1.23 lakh in the latest quarter from Rs 1.30 lakh in year-ago period.

The combined net profit of the three companies rose 19.1 per cent to Rs 3,411.67 crore in Q3 of this fiscal from Rs 2,864.50 crore a year ago.

Their total revenue rose 25.4 per cent from Rs 12,679.73 crore to Rs 15,904.18 crore during the quarter under review.

At the same time, the total employee strength of the three firms stood at 2,76,662 people at the end of December 2007, against 2,19,108 in December 2006.