Bengaluru: 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 firms move to hire in its major markets.
In FY17, Infosys had over 1,700 employees who earned more than Rs 1crore, as ET had reported.
The numbers are not directly comparable. FY19 data, which ET has accessed from an Infosys executive, excludes more than 1,700 people directly employed by the companys European branches. This could not be obtained due to the European Unions General Data Protection Regulation (GDPR).
Infosys has hired more than 9,100 people in the US since 2017, much in line with former chief executive Vishal Sikkas stated goal of hiring 10,000 in its major market.
However, it appears to have come at a price. The company has cut its margin target twice since the hiring goal was announced. It now expects a margin of 21-23% for FY20, down from 22-24%.
Onsite employee costs are a part of that, experts said. As most IT companies are following localisation strategies, the market for talent is getting more competitive and employee costs are getting higher, they said.
“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 high margins they are used too.”
Infosys declined to comment.
Among the highest paid overseas are both older employees and consultants who have come in through acquisitions. The list includes Paul Haines, previously director of Noah Consulting and now an associate partner at Infosys Consulting, who earned Rs 6.9 crore in FY19; and John Brizzi, vice-president and partner at Infosys Consulting, earning Rs 5.7 crore.
Data ET has accessed also shows that some of Infosys acquisitions have come at a high cost, excluding the initial purchase price.
At Noah Consulting, for example, directors Stewart Nelson and Shannon Tassin are among the top 10 earners globally for Infosys.
There are five more Noah executives who took home com