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India’s top information technology firms delivered a mixed performance on revenue per employee (RPE) in the September quarter
IT Companies
India’s top information technology firms delivered a mixed performance on revenue per employee (RPE) in the September quarter, even as a few mid-tier players outshone industry leaders on productivity.
According to data from UnearthInsight Research, HCLTech led the pack among large-cap IT firms with a 2% rise in RPE to over $16,000 (Rs 14.17 lakh), alongside a 3.7% increase in headcount. Market leader Tata Consultancy Services (TCS) and Tech Mahindra also recorded modest RPE gains of 0.5% and 1%, respectively, aided by workforce optimisation and project mix improvements despite reduced employee counts.
In contrast, Infosys and Wipro saw RPE declines of 0.7% and 4.7%, respectively. UnearthInsight attributed TCS’s growth to workforce restructuring, while HCLTech’s gains were driven by AI-led productivity improvements and strong project execution. Infosys’s headcount expansion signals investment in AI-driven roles for future deal wins, whereas Wipro’s flat hiring and weaker billability weighed on performance.
Among mid-tier firms, Persistent Systems and Mphasis posted stronger RPE growth of 4.2% and 8.4%, respectively. Their ability to decouple revenue growth from headcount expansion—through cost efficiencies and smaller-scale, high-value projects—boosted overall productivity, according to an earlier ET report.
Despite operating at a larger scale, analysts said HCLTech continues to deliver steady productivity improvements. “Around 30–40% of HCLTech’s RPE growth is driven by AI-led transformation and productivity initiatives,” said Gaurav Vasu, cofounder of UnearthInsight, adding that hiring skilled AI and data engineers at a premium has also helped.
Vasu noted that geography and service mix play a key role in determining RPE. “TCS earns about 10% of its revenue from India, where RPE is lower than in North America, while for HCLTech, it’s below 3%,” he said.
Yugal Joshi, partner at US-based consultancy Everest Group, added that HCLTech’s diversified portfolio also supports RPE strength. “Its software business is light on workforce but high on revenue—especially after acquiring IBM’s software assets in 2019,” he said, referring to HCLTech’s purchase of IBM’s security, marketing, and digital commerce solutions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 13, 2025, 13:12 IST
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