TCS Vs Infosys Employee expenses:
Both TCS and Infosys derive most of their revenues from IT services. To deliver exceptional service, they need exceptional talent who can deliver the latest technology solutions to their clients. As a result, one of the major costs for them is employee costs. Below are the comparison for both of them compared from 2012 to 2021.
TCS has consistently seen its employee costs as a percentage of revenues increasing which has impacted its margins recently. It may impact the company further going forward if not managed well. As an investor, I would like to monitor this as it is the highest cost component for the company.
On the other hand, Infosys has not seen a huge change in costs as a percentage of revenue.
This may escalate further and hence needs to be closely monitored especially during times of such high attrition.
