Why TCS doesn't pay us the value we deserve?
I've seen in my manager's laptop while he's sharing his screen that for my 1 hour of work TCS is charging 25USD. If we do a rough calculation it becomes almost a monthly income of 359,390 INR while I get only 75,000 - 80,000 INR, which roughly becomes only 21% of my actual value. Whyyy???
TCS has its own compensation structure, balancing costs and profits. It's frustrating, but remember, it's not just about hourly rates, there are other costs involved too
Despite having various operational costs, TCS could utilize its profits to narrow the compensation gap and better align salaries with market value. This disparity is a key reason why talented professionals are increasingly resigning from TCS to join companies that truly recognize and reward their worth.
Cost in not your salary alone
Few other cost ,-
Laptops
Softwares (mail id teams etc)
Real estate and infrastructure (light water network etc)
Other tcs support employees which are not billable to customer
Sales team which brings project for you
Some Minimum bench strength required to keep project running
Security
Training and learning
And many other things .
If you sum up everything your actual cost will easily reach 16- 20 USD per hour.
Think holistically
Then how come other companies (mostly product based companies) are able to pay this much amount directly to their employee? Don't they also need infrastructure, real estate, businesses etc? I'm not saying that TCS should give it all to their employees, obviously they also need money to run the organisation, but the major point I wanted to highlight is apart from us engineers there're a lot of non working seniors sitting on top and milking on our hard earned money.
Product companies have different revenue sources not per hour billing rate ....
They pay it resource mostly around double of what tcs pays (on average . Some pays mor some pays less)...
They are able to pay that much directly because if they don't hire direct then they will be paying to companies like tcs for it work and will be dependant on them. Instead they choose to pay directly more and even after adding rest of cost it's approx 20-30 percent cheaper than hiring tcs alike ...
And benefit they get is they hire all good techies and have no dependency on others .
Most importantly these high paying product companies are first to fire their employees without even thinking if their sales goes down because they have no other place to utilise these tech resources .
Everything has pros and cons . High paying jobs comes high risk and low paying job with mental peace . We can choose what we want
That's how they maintain bench,a large non billable part,a lot of philanthropy!But thye should not deduct QVA like this!
This is the real frustration, TCS is just squeezing their employees money to make profit. You see a lot of 5+ YOE employees in TCS has avg salary <10LPA
Tcs charging fee from customer is not directly proportional to your value... Consider tcs brand name as well it is attached to your name that's why customer is ready to give that amount.. If you feel unhappy try to go in market without these brand names and see who pays you how much for your talent
For men 45USD per hr I am getting 94K PM only, what about this shit bro???
That's the worst part of being in TCS everyday we wake up we get a feeling that all this hardwork isn't worth what we're getting. In the name of charity, providing countless jobs, TCS is indirectly using our money to maintain their name. It's like the govt uses taxpayers money to provide freebies 🙂
That’s the standard that ur cost is 20-25% of ur price in all ITES
Is it same in other companies (probably not another service based company) too, I don't think so.
Yes I have been is presales for 16 long years in multiple large org it’s the same. Any ways the company is not only spending ur salary on u, it has to maintain office space laptops and there are lot of non billable roles like presales, sales, HR, Finance, senior leadership who are not billed to client but are necessary for running the companies and bringing in businesses. So no where in the world u will be paid anywhere’ close to ur billing rate
TCS billing rate is low compared to its peer companies.
All the bpo employees have even more lesser that 5 lakhs salary with 10+ years of experience.
https://www.livemint.com/tata-consultancy-services/profit-loss-annual/companyid-s0003051
TCS doesn't pay an individual proportionately to what they charge the customer. The revenue/profit is redirected to other functions that support the organisation like admin, IS, HR, staff, and other non billable functions. The issue is 25USD per hour is close to minimum wages of about 17USD per hour in some US states. It amounts to barely 60k USD per year which is only touching the average salary of an entry level software engineer in the first place. Imagine using this base to support a whole organisation of software and non-software folks. TCS needs to raise the hourly charges to customers which have remained largely unchanged for decades and at the same time projects need to improve in efficiency to avoid cost over runs. Don't even talk about the millions TCS pays in penalties due to stupid actions of some employees like copying customer code and discrimination suits. Not to justify the pay, but to highlight the challenges in giving hikes. You are much better off working for the customer directly unless you want to be charitable.
On a different note - Had it not been for TCS and similar Indian outsourcing companies we mat have created a much larger base of NRIs who would be running the US and the world by now. What do you think 🤣
