IT Services

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Cost Analysis

The chapter breaks down the various expenses for an Indian IT company and showcases the major cost heads. It further throws light on the costs as a percentage of the revenue for a few major and midsized companies.

The following points are covered in the chapter-

  • Expenditure breakdown for a few top and midsized companies – expenditure forms a higher part of the revenue for smaller to mid sized firms
  • Major industry cost heads – employee cost forms the major chunk
  • Employee cost – on the rise
  • Software development cost – varies in terms of development and outsourcing
  • Other costs – increase in lobbying expenditure
  • Trends –continual shift to tier 2/3 cities

Impact Analysis

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