Infosys is First IT Co to Adopt Metric to Evaluate Innovation The Bengaluru-based company became the first software exporter in India to introduce `revenue per FTE (full-time equivalent). This metric measures revenue generated by the employees working on a project unlike the traditional method of tracking revenue per employee, which takes into account all employees including engineers who are on a bench or undergoing training. “ Infosys revenue per FTE for the IT services increased to $60,148 in the quarter to December, up from $59,645 at the end of the previous quarter.The company also shared the revenue per FTE for IT services for the year ended December 2013, when it stood at $58,330. “Revenue per FTE is especially useful because it tells you how much high value and margin activity a company is delivering.” Revenue per FTE is a relative measure of how much automation a company deploys, for it increases revenues as a company automates a process and does away with the human hours required to do a repetitive work. Hence, this metric also underlines Sikka’s strategy of delivering “more with less” for companies over 900 customers. “Infosys is trying to get out of the margin erosion game, a game where India-centric service providers are saying to their clients, ‘give me money, so I can save you money’. Instead, Infosys aims at delivering more value to its clients, augmenting its people with software capital (including automation or solutions like EdgeVerve, the products, platforms and solutions subsidiary).”
Posted on: Wed, 14 Jan 2015 01:21:43 +0000
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