Infosys has more than 2,200 employees outside India who earned more than Rs 1 crore last fiscal, a jump of over 500 since FY17, data accessed by ET shows, highlighting the high-cost nature of the firm’s move to hire in its major markets.
“Margins in the past have been enabled at the +20% rate because of the low wages offshore and the ability to utilise a high number of freshers. As the market pivots into digital, both of these factors are diminished,” said Peter Bendor Samuel, chief executive of IT con-sultancy Everest Research. “For the difficult-to-find digital skills, the hourly cost often exceeds $150 and, in some cases, rises as high as $175-200. Although these costs can be passed on to their clients, there is not (enough) room to make the margins they are used to.”
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