Leading IT firms Tata Consultancy Services, Infosys and Wipro witnessed a sharp increase in employee benefit expenses, including salaries and bonuses, in FY19.
This is primarily due to increased hiring in the US: in recent years, the three companies have altogether hired over 25,000 employees there, with the bulk of them coming on board last fiscal.
In FY19, TCS saw an 18 per cent increase in its employee cost, followed by Infosys at 17 per cent and Wipro at 10 per cent.
Competitive advantageTCS has consistently been among the top three IT recruiters in the US over the past few years. “This, and (a high) retention rate, are a source of competitive advantage for the company,” Ajoy Mukherjee, Executive Vice-President and Global Head, Human Resources, TCS, was quoted as saying in a release.
