Madhusudan Rao

Which IT Outsourcing Stock is the Best?

Hi,

I was referring to the Software engineers' (resources salaries) and not average salaries across the company. My apologies for the confusion. Please note that this also may have increased to about 2.5 to 3 lakh p.a (starting salaries).

Which IT Outsourcing Stock is the Best?

Thanks for your feedback. I beg to differ on the basic premise that the intrinsic value of a stock is calculated based on P/E ratio. The intrinsic value should be calculated based on the future cash flows to equity (FCFE) discounted at an appropriate rate. My article was an attempt to make an assessment of the Indian IT Stocks as an investment idea, taking into consideration the fact that IBM had performed well in the past one year, whereas Infy and TCS had not.
A deeper analysis is definitely a great idea.

Which IT Outsourcing Stock is the Best?

Hi,

Thanks for bringing this to my notice. To confirm, I did mean Tata Consultancy services.Will ensure that such errors do not occur again

Which IT Outsourcing Stock is the Best?

For employees with IBM India for the past 4 years, with total work experience of 6+ years in the IT industry, the CTC is about 5.2 lakhs. The CTC is very different from take home, the actual salary figures. IBM, one of the highest paymasters in the IT services pays Rs 2.3 to 3.0 lakhs per annum CTC to freshers. Indian IT Cos pay (Infy) much lower approx 12k take home per month and a CTC of about Rs 2 to 2.2 lakhs per annum.

Which IT Outsourcing Stock is the Best?

Hi,

Well, I am aware of the salary numbers because I have worked in this industry for about 5 years now. Let me clarify that I am only refering to employees in the IT services. I went through the article that indicates that the salaries of employees engaged in R&D (MNCs) are high. (Which is correct)
I think these salary figures (stated in the article) include the component that is paid to engineers onsite, and that may also be the reason for a skewed figure. These onsite employees are also billed to the client higher than offshore employees. This onsite component should not ideally be considered outsourcing salaries (that will hit the margins), as they bring much higher revenues.

The article also confirms that TCS, Infy (ranked 28th) and other Indian s/w firms are low paymasters. (even onsite)