[anuraj]

Average productivity of an Indian IT services employee is as low as $15000 a year. With no uptick in productivity - the only way you can improve margins is to cut the flab - which is there in senior and middle layers. So senior and middle managers who have made themselves redundant without upskilling are now game. Average work life duration of an Indian IT employee might be less than 20 years currently.

[klausjensen]

Trying to understand "average productivity" here. The 15K is what an average IT worker produces per year - for example if they were billed out for 1500 hours at 10$ per hour?

Genuine question, trying to understand. :)

[anuraj]

That is true. Most companies have bench+overhead and billed resources may be 60% or less of total work force. Average billing works out to $10-15 for the low value high volume work these IT services firms do and that has not changed over the last 20 years or so. What has changed is a bloated middle/senior management which is a drag to the above business model. They did try to move up into consultancy and productised services - which did not really work.

[sufiyan]

Nah.. That's how much they get paid. The consulting company will charge about 5-10x for this resource though. (source from a friend who was there)