With human resources being the highest cost in IT industry, Infosys with 30000 employees tops the list in incurring this cost the most.
As per the internal sources from the company, Infosys has a HR policy of maintaining 33% of the total of its employee force for just benching.
For those who are new to the term 'benching', it is the term used in the industry for paid employees without any work or projects in hand. IT companies generally have this policy for avoiding shortage of employees at
the time of receiving new projects.
Infosys incurs 33% of human resource cost which is INR 5800/- crores approx (based on March results software development exp) towards benching without any return from such cost.
Being policy, this cost is permanent and not temporary. The company is also facing huge increase in attrition rate in last 6 months.
The profitability of the company is certainly being hit by such policies and threat to sustainability of its ability to generate profits is uncertain in light of such cost being fixed in nature.
Disclaimer: The readers are requested to invest on their own risk. This site does not take any responsility/liability of losses made by readers on investments decisions based on this article.
As per the internal sources from the company, Infosys has a HR policy of maintaining 33% of the total of its employee force for just benching.
For those who are new to the term 'benching', it is the term used in the industry for paid employees without any work or projects in hand. IT companies generally have this policy for avoiding shortage of employees at
the time of receiving new projects.
Infosys incurs 33% of human resource cost which is INR 5800/- crores approx (based on March results software development exp) towards benching without any return from such cost.
Being policy, this cost is permanent and not temporary. The company is also facing huge increase in attrition rate in last 6 months.
The profitability of the company is certainly being hit by such policies and threat to sustainability of its ability to generate profits is uncertain in light of such cost being fixed in nature.
Disclaimer: The readers are requested to invest on their own risk. This site does not take any responsility/liability of losses made by readers on investments decisions based on this article.
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