|Revenues||Employees|| || || || Income|
|1998||0.77016||0.445681|| || ||0.52038|
|1999||0.674118||0.430961|| || ||2.47148|
|2000||1.003378||0.824272|| || ||0.987837|
|2001||0.314356||0.092259|| || ||0.604141|
|2002||0.413755||0.434159|| || ||0.398577|
|2003||0.409625||0.668831|| || ||0.597255|
|2004||0.498233||0.431907|| || ||0.213617|
|2005||0.351759||0.432473|| || ||0.460251|
As you can see Infosys was only able to sustain consistent growth by continuously increasing its workforce size. Well, it might not be too troubling to everyone. However, an almost linear relationship between growth in revenues ans employees is troubling given that Infosys is already 50,000 big with 2.1 Billion USD in revenues - that roughly translates to 42,000 USD in revenues per employee. Firms like EDS that Infy compares itself with are close to 171,000 USD in revenues per employee at a scale of 20 Billion USD in sales and 117,000 in work force size.
Let us do a small calculation. Even if Infy were to become half the size of EDS at an average growth rate of 55% it will be 2010 and its work force would be 246,000 in number (at an average growth rate of 47%).
To reach 20 billion in revenues Infy will have to employ around 360,000 employees.
Well, all this after assuming a consistent growth rate for the next five years.
Can Infy manage 360,000 employees the same way it did 50,000 ? Are there limits to organization? Given the rate of growth in India, there is bound to be inflation and rising incomes. How will Infy cope with rising costs of hiring, training and sustaining talent.
Given its current strategy of adding more people to achieve growth, Infy seems to be going towards a inevitable doom. It is bound to hit a limit in terms of organizing workforce. It needs more managerial talent and really good quality levels and my bet is that this is not there in the foreseeable future.
There has to be a change in the current strategy. I don't know how it will come - maybe products, maybe more value-adding consulting. What I do know is that managing 360,000 employees and bringing in 20 billion in revenues is not going to be the future for Infy.