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INDEX
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CHAPTER 1: EXECUTIVE SUMMARY
This executive summary provides an overview of the result of the Research “Market competitiveness
of Software Engineers (Expatriate Compensation components) across foreign assignments in the IT
industry”.
The survey tries to answer questions like the salary components and structure of the expats,
difference in salary in host country vs. home country, how the company takes care of dual taxations,
special benefits that these expats get, who takes care of their PF, variation of salary from project to
project and the process of repatriation & how final salary grade is established.
Primary data collection was the method of research followed. It required collecting data through two
questionnaires. The survey was completed not only by the Employees in the leading IT companies but
also by the employers of the respective companies. The respondents were sourced from top five
companies with international presence namely IBM, TCS, Wipro, Capgemini and Cognizant which
assisted in providing imperative information required to draw necessary conclusions of the Research.
It was deduced from the survey that different companies differ in their pay structure, benefits and
criteria of selecting employees for foreign projects. Some of the observations that the survey
highlighted were:
Males over Females were preferred for foreign projects except for in Wipro.
Employees between 24-26 years of age were chosen which shows scope of young employees
getting foreign projects is high in these companies.
Majority of the expatriate candidates were graduates.
Most of the candidates getting foreign projects had 1-3 years prior experience with the
company.
Majority of the Expats were sent to USA & UK for such projects.
The % hike in salary after returning from foreign projects was highest in Cognizant &
Capgemini whereas there was no hike at all in case of IBM.
Basic salary of expatriates while they are on the foreign assignment is paid in terms of the host
currency.
Better Quality assignments were the main source of motivation for employees to take up
foreign projects.
Maternity & Paternity leaves, Work from Home, Paid Holidays, and Family Benefits are some
of the most preferred form in benefits.
Furthermore, a few recommendations that were arrived at from the survey include providing better
career planning & better work life balance. Also, different countries have different cost of living and
that should be kept in mind while deciding the pay for expats. Some companies don’t follow
standards when it comes to conveyance allowance, medical allowance etc, they need to follow the
standard payments else retaining top talent would become difficult.
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CHAPTER 2: Introduction to the Job - Software Engineers
Software Engineering concept originated from early 1960s and its emergence as a profession started
in early 1980s. Software Engineer also referred to as software developer or computer programmer,
play a key role in the design, installation, testing and maintenance of software systems. The programs
created are likely to help businesses to be more efficient and provide a better service. Based on the
company’s particular requirements, the engineer might be responsible for writing and coding
individual programmes or providing an entirely new software resource.
As a software engineer, the tasks involved are as follows:
• Reviewing current systems
• Presenting ideas for system improvements, including cost proposals
• Working closely with analysts, designers and staff
• Producing detailed specifications and writing the program codes
• Testing the product in controlled, real situations before going live
• Preparation of training manuals for users
• Maintaining the systems once they are up and running
The various designations of software engineers used by the IT companies are listed below:
IBM: Application developer, Senior Application Developer, IT Programmer, System Engineer,
Senior System Engineer
TCS: Assistance System Engineer, System Engineer, IT Analyst
CAPGEMENI: Software Engineer (Level 1, 2), Senior Software Engineer
CTS: Project Associate, Senior Project Associate, Programmer Analyst
WIPRO: Associate Software Engineer, Software Engineer, Senior Software Engineer,
Programmer Analyst
INFOSYS: Software Developer, Senior System Engineer
Required skills
Knowledge of programming skills is a prerequisite. One needs to be comfortable with web-based
programs, as well as traditional programs like Java and Visual Basic. However, the particular language
will depend on the requirements of the specific company. Among the skills, employers will look for
are:
• Expertise in current computer hardware and software
• Ability to use one or more development language (C++, PHP, HTML, etc.)
• Strong communication skills
• Ability to work in a team
• Eye for detail and identifying problems
• Understanding of business
• Analytical and commercial experience
Entry requirements/Qualifications
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Most employers will expect the candidate to have a relevant computing qualification or degree which
is usually B.TECH/BE, BCA or MCA. If one has a degree, but it’s not related to IT, he/she could apply
for a graduate trainee scheme or take a postgraduate conversion course to build up the relevant skills.
Some of the most sought after skills by employers include Java, C++, Smalltalk, Visual Basic, Oracle
and Linux.
Training
It is essential that one stay up to date with the fast paced IT industry as new developments are always
appearing. Many organisations may offer a training programme to keep the employees updated on
the latest movements within the industry, particularly relating to the business’ requirements and
resources. At a junior level, they could learn many skills from more senior programmers and go on
external courses to boost their personal skills.
Working Environment
In most cases, a software engineer will be working 37 to 40 hours a week, but when deadlines have to
be met, one can be required to working longer at later hours or at weekend.
Travelling may be involved, depending whether one works in house or for a range of clients. If one
does work for clients, it is likely he will have to visit the sites and spend the majority of time on the
premises. If they are far away, it may be necessary to work away from home for a period of time.
Thanks to various technological advances; there is also the possibility of working remotely from home
if one is self-employed or the company allows it.
Challenges
Despite the systematic approach in software development, there are still some serious challenges
faced by software engineers. Some of these challenges are listed below:
The methods used to develop small or medium-scale projects are not suitable when it comes
to the development of large-scale or complex systems.
One of the challenges of software engineering is to produce high quality software adapting to
the changing needs within acceptable schedules.
Informal communications take up a considerable portion of the time spent on software
projects. Such wastage of time delays the completion of projects in the specified time.
The employee generally has only a vague idea about the scope and requirements of the
software system. This usually results in the development of software, which does not meet the
user's requirements.
Changes are usually incorporated in documents without following any standard procedure.
Thus, verification of all such changes often becomes difficult.
The development of high-quality and reliable software requires the software to be thoroughly
tested. Though thorough testing of software consumes the majority of resources,
underestimating it because of any reasons deteriorates the software quality.
In addition to the above mentioned key challenges, the responsibilities of the system analyst,
designers and programmers are usually not well defined. Also, if the user requirements are not
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precisely defined, software developers can misinterpret the meaning. All these challenges need to be
addressed in order to ensure that the software is developed within the specified time and estimated
costs and also meets the requirements specified by the user.
Opportunities
Currently, about a third of IT jobs are in development and programming and a candidate can become
a software engineer across virtually all industry sectors. In a typical progression path, the employee
could be promoted to senior or principal developer and from there to project manager. Alternatively,
one could choose to move into a related field of technology, like systems design, IT architecture and
business systems analysis.
If one is keen to work for oneself, there is a chance he/she could work as a freelancer or consultant,
giving him/her increased working flexibility. Overseas work is also available for those interested in
seeing more of the world and working in a range of locations.
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CHAPTER 3- ABOUT THE COMPANIES VISITED
Wipro Ltd (NYSE:WIT) is a global information technology, consulting and outsourcing company with
170,000+ workforce serving clients in 175+ cities across 6 continents. The company posted revenues
of $7.7 Billion for the financial year ended Mar 31, 2016.
Wipro helps customers do business better by leveraging our industry-wide experience, deep
technology expertise, comprehensive portfolio of services and vertically aligned business model. Our
55+ dedicated emerging technologies ‘Centers of Excellence’ enable us to harness the latest
technology for delivering business capability to our clients.
Wipro is globally recognized for its innovative approach towards delivering business value and its
commitment to sustainability. Wipro champions optimized utilization of natural resources, capital and
talent. Today we are a trusted partner of choice for global businesses looking to ‘differentiate at the
front’ and ‘standardize at the core’ through technology interventions.
In today’s world, organizations will have to rapidly reengineer themselves and be more responsive to
changing customer needs. Wipro is well positioned to be a partner and co-innovator to businesses in
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their transformation journey, identify new growth opportunities and facilitate their foray into new
sectors and markets.
TCS is an International multinational information technology (IT) service, consulting and business
solutions company headquartered in Mumbai, Maharashtra. It is a subsidiary of the Tata Group and
operates in 46 countries. TCS is one of the largest Indian companies by market capitalization ($80
billion). TCS is now placed among the ‘Big 4’ most valuable IT services brands worldwide. TCS alone
generates 70% revenues of its parent company, Tata Sons. In 2015, TCS is ranked 64th overall in
the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT services
company and the first Indian company. It is the world's 10th largest IT services provider, measured by
the revenues. As of December 2015, it is ranked 10th on the Fortune India 500 list. On 12 January
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2017, N. Chandrashekaran was elevated as the chairman for Tata Sons . Rajesh Gopinathan was
appointed as the new MD and CEO for TCS
Tata Consultancy Services (TCS) is a global leader in IT services, digital and business solutions that
partners with its clients to simplify, strengthen and transform their businesses. We ensure the highest
levels of certainty and satisfaction through a deep-set commitment to our clients, comprehensive
industry expertise and a global network of innovation and delivery centres.
TCS has been recognized by Brand Finance as one of the Big 4 Global IT Services Brands. Our
continued industry-leading growth is a testament to the certainty our clients experience every day.
Cognizant is an American multinational corporation that provides digital, technology, consulting, and
operations services. It is headquartered in Teaneck, New Jersey, United States. Cognizant is listed in
the NASDAQ-100 and the S&P 500 indices. It was founded as an in-house technology unit of Dun &
Bradstreet in 1994, and started serving external clients in 1996.
It made an initial public offering in 1998, after a series of corporate splits and restructures of its
parent companies. It was the first software services firm listed on the NASDAQ. During the dot com
bust, it grew by accepting the application maintenance work that the bigger players were unwilling to
perform. Gradually, it ventured into application development, complex systems integration and
consulting work. Cognizant had a period of fast growth during the 2000s, becoming a Fortune
500 company in 2011. In 2015, the Fortune magazine named it as the world's fourth most admired IT
Services Company.
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Chapter-4 COMPANY-WISE HIERARCHY STRUCTURE
• Hierarchical
• Matrix
• Flat (also known as horizontal)
Following are few organograms of the companies we visited during this survey:
1) TCS
Principal
Consultant
Senior
Consultant
Consultant
CEO Vice
President Associate
Consultant
IT Analyst
System
Engineer
Assistant System
Engineer
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2) WIPRO 3. COGNIZANT
CEO
President CEO
General Manager
Project Manager
Delivery Manager
Project
Manager/Architect Senior Manager
Technical/Module
Lead
Senior Technical
Software Lead
Engineer
Software
Engineer
trainee
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4) CAPEGEMINI
CEO
Vice
President
Director
(M5)
Senior Manager
(M3/M4)
Manager
(M1/M2)
Senior Associate
Consultant Consultant
Associate System
Engineer
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5) IBM
Country General
Manager
Regional General
Manager
GD Delivery Project
Executive
Senior Associate
Lead Business Analyst
Engineer
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CHAPTER 5: RESEARCH METHODOLOGY
The topic for the survey is “Market Competitiveness of salary of software engineers (expatriate
compensation components) across foreign assignments in the IT industry”. The purpose behind the
survey is-
Objectives:
1. Primary Research Objective: To compare the salary and other employee benefits/incentives in
the year 2016 for Software Engineers of top 5 IT companies operating in Pune.
Primary Data Collection - Primary data collection was the principal mode of enquiry. It entailed
collecting data through two well-structured questionnaires consisting of ten or more questions which
essentially aimed at bringing out relevant information to meet the overall objectives of the research.
The responses were filled out in a hard copy format as the survey was personally conducted by the
researchers in each of the identified companies. Further, since the research work was a field study,
the researchers were able to come up with a concrete outlook based on the observations they made
pertaining to the employee/employer behaviour while they responded to the questions asked. Such
kind of analysis can be condensed under the umbrella of ‘Observations through being Participant in
actual Field Study’ methodology.
2. Secondary Research Objective: To analyze the data collected, studying the salary structure of
Software Developers and finally selecting the company.
Secondary Data Collection - Various sources of secondary data collection which were utilized
encompass journals, newspapers, databases and previously published papers available over the
internet.
Scope / Limitation:
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Hypothesis:
Following is the hypothesis which was structured before the study was initiated:
Research Methodology:
Sample Size -
The Sample Size comprised of 60 respondents (50 Software Engineers and 10 Employers or HR
Managers).
Pilot Study –
In order to gauge the feasibility of the intended research, a pilot study was conducted. Keeping in
mind the overall objectives of the study, two questionnaires were framed. These were then filled in by
a sample size of 6 respondents (4 employees and 2 employers). Based on the analysis of the
responses of the identified stakeholders and discussions/deliberations within the team, the
authenticity of the predictive hypothesis was tested. This enabled us to reinstate our intention to
conduct further research in the identified domain.
A field study was carried out across various IT companies situated in Pune. Questionnaires/survey
forms were used to gather concrete facts and opinions of Software Engineers sent to other countries
for work purposes/ projects by these IT companies across Pune. The data collected was then
structured and streamlined in order to highlight certain relevant facts and statistics related to the
study.
Further, the survey results were also used to scientifically and objectively classify the data using
certain commonly used tools such as Microsoft Excel and Microsoft Power Point and other online
software’s such as online conversion.com. Relevant excel formulas, charts and graphs were then used
to infer and test the applicability of the existing hypothesis.
1. A secondary analysis about IT sector, Job Profiles and the companies to be surveyed was done
through use of internet and books,
2. The research objective and a predictive hypothesis was identified/framed to conduct the study
more competently,
3. A small pilot study was carried out with the help of our friends and batch mates who have
worked/are working in the IT industry to know about their salary structure.
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4. Final Hypothesis was prepared on the basis of the pilot study and then Questionnaires were
prepared for employees as well as for the Supervisors or Managers,
5. One-to- one interactions with the software engineers and HR managers were carried out,
6. Analysis of the results of each questionnaire was done, which was then used for a comparative
study between the identified companies,
7. Charts and graphs were prepared to prove the reliability of the stated hypothesis,
Companies Selected:
IBM
Wipro
Cognizant
TCS
Capgemini
Other than these 5 companies we have surveyed many other companies such as:
Infosys
KPIT
Delux
Barclays
Microwave Technologies
We selected the above stated companies on the basis of their market captivity and revenues
earned/generated by these firms. We took revenues as a base to select the companies because we
assumed that the revenues generated are the major influencer for expatriation across these IT
companies. Other factors that motivate an employee for expatriation were also studied and the salary
structure of employees before and after they were sent for foreign assignments were studied in
detail.
Analysis of Data:
The data collected is presented in the form of tables and graphs under Chapter-7 “Data Compilation
and Analysis”. The subsequent chapters explain the dashboard, research findings and conclusion and
recommendations.
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Chapter 6
DATA COMPILATION AND ANALYSIS
Percentage of total
S.no Company name respondents (%)
1 IBM 10.87
2 TCS 30.43
3 Wipro 13.04
4 Capgemini 21.74
5 Cognizant 23.91
Table: Employee Distribution
30.43
23.91
21.74
13.04
10.87
Discussion:
The respondents were sourced from top five companies with international presence i.e
IBM, TCS, Wipro, Capgemini and Cognizant
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6 MALE
FEMALE
4
0
IBM TCS WIPRO CAPEGEMINI COGNIZANT
Discussion: Majority of the candidates going on foreign projects in all five companies
are males, followed by females respectively.
26 25
IBM
TCS
COGNIZANT
26.5 25 CAPEGEMINI
WIPRO
26.5
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3. Are you a graduate or a post graduate?
Objective: To assess if Graduate employees are preferred over Post Graduate
employees
EDUCATIONAL QUALIFICATIONS
GRADUATION POST GRADUATION
6
COGNIZANT 0
9
CAPEGEMINI 1
3
WIPRO 2
13
TCS 1
4
IBM 1
Discussion: - Majority of the expatriate candidates across all the five companies are
graduates, followed by post graduates respectively.
4. After how many years of your association with the company were you given
chance to work upon any foreign assignment?
Objective: To understand if there exists any relation between the number of years
worked in this profession and the opportunity to take up foreign assignment.
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Years of Prior Association
5 5
3 3 3
2 2 2 2 2 2
1 1 1
Less than 1 year 1-3 years 3-5 years more than 5 years
Discussion: According to the above data, candidates belonging to all the groups i.e.
Less than one year in the organization, 1-3 years, 3-5 years and more than 5 years have
been given foreign projects in different companies. But it is evident that most of the
candidates getting foreign projects belong to the group of 1-3 years prior experience
with the company which indicates that for being an expatriate, the potential of the
candidate is seen and he is evaluated for a period of about 1-3 years and then sent
based on the availability of the projects.
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Country wise distribution of expatriates
IBM WIPRO COGNIZANT TCS CAPEGEMINI
6
5 5
44 4
2
1 1 1 1 1 1 1 1 1 1 1
6. What is the range of your Annual CTC (in Lacs) before expatriation and after
repatriation?
Objective: To assess what is the distribution of CTC among the candidates before
expatriation and after repatriation
COGNIZANT 57.19
Table: Percentage hike in CTC
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%HIKE IN CTC
COGNIZANT 57.1
NAME OF THE COMPANY
CAPEGEMINI 57.14
WIPRO 30.7
TCS 22.22
IBM 5
0 10 20 30 40 50 60
PERCENTAGE
Discussion: As it is evident from the table as well as the figure, in case of IBM, there is
very less hike, i.e. 5% which depicts that hike in the salary does not depends on the
number of years the candidates are in the band and only if a candidate has worked on a
foreign assignment for more than 2.5 years, he gets a pay hike. On the other hand, in
case of Capgemini and Cognizant, the hike in the salary is maximum because maximum
number of candidates from the band of 3.5-5.5 were sent and their salary has
increased by a high percentage. In case of TCS, before expatriation, the salary of all the
candidates is in the band 4.5 and 5.5 after repatriation. In case of Wipro, the salary
before expatriation falls in the band 6.5 and in the band 7.5 after repatriation.
HOST TOTAL NO OF
COMPANY INR CURRENCY EMPLOYEES
IBM 0 5 5
TCS 3 11 14
WIPRO 1 5 6
CAPEGEMINI 2 8 10
COGNIZANT 0 11 11
Table: currency in which basic is paid
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HOW IS BASIC PAID?
HOST CURRENCY INR
COGNIZANT 11
0
CAPEGEMINI 8
2
WIPRO 5
1
TCS 11
3
IBM 5
0
Discussion: It is evident from the above graph that the basic salary of expatriates
while they are on the foreign assignment is paid in terms of the host currency itself.
The few cases in which the basic is paid in terms of the home currency, ie. In terms
of INR, are those candidates who have gone just for a short period ie.1-6 months.
VISA TYPE
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Number of the employees
5
4
3 3 3 3 3
2 2 2
1 1 1 1
Discussion: It can be seen in the graph that the most common visa types that the
candidates were sent upon on foreign assignments were L1--B, Tier 2 ICT, H1-B,
Business visa and Tier 1 ICT visa with most of the expatriates using L1-B visa.
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9. What motivates you to work upon Foreign assignments?
Objective: To understand the influence of non-monetary benefits for the candidates
to work upon Foreign Assignments.
Promotion Opportunities
Performance Pay
Conveyance Allowance
Relocation Allowance
HRA
DA
Taxation Schemes
0 2 4 6 8 10 12 14
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10. Please specify the contribution against the following components by the Home
Country
HRA
Conveyance Allowance
Medical Allowance
Objective: to understand the contribution of these components in the home country
HRA in %
WIPRO
COGNIZANT
CAPEGEMINI
HRA in %
TCS
IBM
0 10 20 30 40 50 60
19,200 19,200
17500 18000
AMOUNT
15000
25
MEDICAL ALLOWANCE
MEDICAL
Discussion: As it is evident from the above graphs, Wipro and TCS both give HRA that is
50% of CTC, whereas Capgemini, Cognizant and IBM give HRA which is 40% of CTC.
Further, IBM and TCS give the highest Conveyance Allowance annually which is equal to
INR 19,200, followed by Wipro who gives INR 18,000 and Cognizant with 17,500.
Capgemini gives the least Conveyance Allowance with INR 15,000. In case of hike in
Medical Allowance, Cognizant does not give medical allowance, but reimburses the
amount. It gives the highest hike in medical allowance, which is 13.5% after
repatriation, followed by IBM, which gives 10% hike in Medical allowance. IBM gives
highest medical allowance to its candidates which is 15000 Capgemini and TCS, give the
least hike in Medical Allowance with a mere 5% hike.
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PF % HIKE DURING FOREIGN ASSIGNMENTS
13.50%
10%
7% PF % HIKE
5% 5%
Discussion: It is evident from the graph that the maximum hike in Provident Fund is
given by Cognizant, which is 13.50%, and it is followed by IBM with a hike of 10%,
further followed by Wipro, providing a 7% hike in PF. TCS and Capgemini stand at par,
providing a hike of 5% to the PF.
12. Which of the Benefits does your company provide to your employees?
Maternity leave Coupons
Paternity leave Cab/Bus facilities
Medical/health Family benefits
Paid holidays Insurance
Work from home ESOPs
Fitness(gym)
Objective: To understand the various benefits that are provided by the company and
also the awareness of these.
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Benefits
11
8 8 8
7 7
6
5
4 4 4
3
2 2 2
Benefits
13
7
6 6
5
4 4 4
3 3 3
2
1 1 1 1
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Benefits
8 8
7 7
5 5 5
4 4 4 4 4 4
3 3 3 3
2 2
Discussion: As we can see from the Figure, that all the companies are providing
Maternity and Paternity benefit along with Family benefits which reflects towards
better working conditions for all candidates in the IT sector. Gym as well as health
benefits are also common components across all the firms reflecting the investment
towards better health facilities for the employees. Other common benefits are
Work From home linking the global presence of all these firms. TCS spans across all
the benefits re-affirming our prior conclusion of higher fringe benefits. ESOPs is the
least preferred mode of benefits for the firms followed by coupons.
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SATISFACTIED VS DISSATISFIED
EMPLOYEES
85.70% 83.30%
81.18%
PERCENTAGE OF THE EMPLOYEES
66.67%
60%
40%
33.33%
14.20% 16.67%
11.11%
Discussion: We infer that most of the candidates are satisfied and the employee
satisfaction levels of the candidates in TCS, Cognizant and Capgemini is higher than that
of Wipro and IBM employees.
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Discussion: From our research, we found out that the monetary benefits given by
Capgemini is higher than that of the other companies, but their non-monetary benefits
are low. Also, Non-Monetary benefits like HRA, Conveyance allowance, etc. are higher
in IBM as compared to the other companies, but their basic salary is low. Hence, if a
candidate is looking for higher monetary benefits while being an expatriate, he should
join Capgemini, followed by Cognizant and if someone wants more of non-monetary
benefits, he should join IBM.
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CHAPTER 7 : OBSERVATIONS AND FINDINGS
From the analysis of the responses to the survey the following observations can be made
The average age of the candidates who are send for foreign assignments is 25 years with 1
years of work experience.
Countries with favourable factors like the presence of business opportunities, low taxes,
adjustment to culture, social environment, strong work ethic, etc. are preferred by the
companies for the foreign assignments (USA and European countries)
Cognizant and Capgemini are on par in their CTC hike followed by Wipro and TCS.
For the period of 1 to 6 months the employees are paid in INR basis whereas for longer
periods they are paid in terms of host countries currency.
L1--B, Tier 2 ICT, H1-B, ICT are the short term visa, Business visa and Tier 1 ICT visa with most
of the expatriates using L1-B visa
Better quality of assignments and cost of living index motivates the employees the most for
taking up the foreign assignments whereas relocation allowance is least motivating
Wipro and TCS are giving HRA of 50% of CTC, whereas Capgemini, Cognizant and IBM give HRA
which is 40% of CTC.
IBM and TCS give the highest Conveyance Allowance annually which is equal to INR 19,200,
followed by Wipro who gives INR 18,000 and Cognizant with 17,500. Capgemini gives the least
Conveyance Allowance with INR 15,000.
Medical Allowance Cognizant gives the highest, which is 13.5% after repatriation, followed by
IBM, which gives 10% hike in Medical allowance. Capgemini and TCS, give the least hike in
Medical Allowance with a mere 5% hike.
The maximum hike Provident Fund in is given by Cognizant (13.50%), followed by IBM (10%),
further followed by Wipro(7%), TCS and Capgemini stand at par at providing a hike of 5% .
companies treat their employees as internal customers , taking care of them by providing
o Maternity and Paternity benefit along with Family benefits.
o Gym as well as health benefits are also common components.
o Work From home linking the global presence of all these firms.
All these benefits reflects towards better working conditions for all candidates in the IT sector, across
all the firms reflecting the investment towards better health facilities for the employees.
TCS provides all the benefits re-affirming our prior conclusion of higher fringe benefits.
ESOPs is the least preferred mode of benefits for the firms followed by coupons.
The employee satisfaction levels in TCS, Cognizant and Capgemini is higher than that of Wipro
and IBM employees.
The monetary benefits given by Capgemini is higher than that of the other companies, but
their non-monetary benefits are low.
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Also, Non-Monetary benefits like HRA, Conveyance allowance, etc. are higher in IBM as
compared to the other companies, but their basic salary is low.
Hence, if a candidate is looking for higher monetary benefits while being an expatriate, he should join
Capgemini, followed by Cognizant and if someone wants more of non-monetary benefits, he should
join IBM.
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CHAPTER 8: DASHBOARD OF COMPANIES SURVEYED
For analysis only the employees from the top 5 IT firms were considered – TCS, Cognizant, Capgemini,
Wipro, IBM. This brought us to a total of 41 surveys of employees across these 5 firms. Weighted
average method was used to remove any kind of bias in the data. The dashboard compares the salary
structure of Expatriates in these firms. It takes into consideration three factors – Basic, Benefits and
total compensation.
Benefits is an average of 4 components namely HRA, DA, Conveyance Allowance and Medical
Allowance.
Formula Used
TCS
TOTAL COMP 99%
Basic 83%
BENEFITS 63%
The total compensation component is in line with the market average and hence indicates that for
this component the company follows the industry trend. The basic and benefits component is at 83
and 63% respectively which is lower than companies such as Cap Gemini but higher than the other 3
companies. The survey showed that 85% employees were satisfied with the current salary structure.
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2. Cognizant
COGNIZANT
Basic 70%
TOTAL COMP 56%
BENEFIT 52%
The company lags behind the Industry Trends and pays the lowest Total compensation component
56%. the company pays an average basic of Rs.2,26,000 compared to Capgeminis Rs.5,89,000 and
total compensation comes to be around Rs.3,34,000 compared to Capgeminis Rs.9,79,000. Overall the
company’s pay structure is lower than the current industry trend. The survey showed 83% people
were satisfied with the salary structure.
3. Cap Gemini
CAP GEMINI
Total Compensation 161%
Basic 180%
Benefits 185%
The company leads across all the components paying much higher than the market average. The
dashboard percentage for benefits is 185% which translates into Rs.3,89,600 which is 3 times more
than cognizant paying Rs.1,08,000. The survey showed that 90% people were satisfied with the pay
structure.
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4. Wipro
WIPRO
BENEFITS 83%
TOTAL Comp 78%
Basic 63%
Although the company lags behind in most the factors, it records the second highest benefit
component with 83% compared to the market average. It pays an average of Rs.2,71,000 as benefits
compared to the industry highest Rs.3,89,000 ( Cap Gemini). However the company pays the lowest
basic which is 63% of the market average. 80% people were satisfied with the salary structure.
5. IBM
Basic 67%
IBM
Total Comp
56%
Benefits 36%
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IBM mostly lags behind the market by paying the lowest Benefit and total compensation component.
40% of the employees surveyed said they were dissatisfied with the present salary structure.
The average and weighted average of all components for the 5 companies has been show below:
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The final Dashboard percentages are shown below:
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CHAPTER 9: CONCLUSION AND RECOMMENDATIONS
The following conclusions were drawn based on our survey analysis:
It is inferred from the analysis of the data , the average age at which employee is selected for
foreign project is minimum in the IBM and TCS which 25 years followed by Wipro at 26 years
and Cognizant and Capgemini with average age of 26.5 years. This means that the scope of
young employees getting foreign projects is high in IBM and TCS in comparison to Wipro,
Cognizant and Capgemini.
It is observed that the TCS , Capgemini and Cognizant prefers Graduates in comparison to Post
Graduates for sending to the foreign projects where as Wipro is taking care for both the
Graduates and Post Graduates at the same time
On the basis of the responses almost all the companies are sending their employees to USA
and UK and on the basis of that they are providing different type of visa IBM generally sends
employees on Tier 2 visa(UK) , whereas TCS , Cognizant and Capgemini sends on mix of all the
visa. Capgemini focuses more on L1 B in comparison to H1B which is good as probability of
getting green card is more in L1B category.
On the basis of the responses Cognizant and IBM are the two companies which pay the basic
payment in the host currency irrespective of the country. TCS, Wipro and Capgemini in some
cases also paid the salary in the Indian Currency.
Since Pune is a tier 2 city the standard HRA should be 40% but TCS and Wipro is providing the
50% HRA to all their employees whereas Cognizant , Capgemini and IBM follows the standard
40% HRA to their employees.
From the data we can see that Cognizant and Capgemini are providing the maximum % hike in
CTC after repatriation for the same job position but in case of IBM is least that is 0% and TCS
and Wipro raises the CTC by 30.7% and 22.22% respectively. This could be one of the reason
for an employee to join Cognizant and Capgemini.
Almost all the companies except IBM were able to keep their employees satisfied before, after
and during the foreign project. This is one factor which pulls down the overall ranking of the
IBM.
Before April 2015, the conveyance allowance taxation exemption limit was capped at Rs.800
per month which has been extended to Rs.1600 per month. IBM and TCS is paying maximum
under the conveyance allowance i.e. 19200 but Wipro, Capgemini and Cognizant is paying less
amount which are 18000 p.a., 17500 p.a., 15000 p.a. respectively.
Also it can be seen that Cognizant and IBM provide at good hike of 13.50% and 10%
respectively but in case of Wipro, TCS and Capgemini have a lower hike rate of 7%, 5 % and 5%
respectively.
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So it can be concluded that if an employee who wants high non-monetary benefit he will
choose IBM over any other company. But if he wants high monetary then definitely the best
option is Capgemini.
Recommendations:
Since employees are looking forward to higher and faster growth opportunities while joining
any organization, companies should focus more on the career planning and aligning individual
expectations with the organization’s goals.
Many of the company is not following the standards like paying the conveyance allowance on
which taxation exemption has been extended to Rs.1600 per month, medical allowance etc.
They should start following the standard payments otherwise employee retention would be
difficult.
TCS has got the concept right when it comes to work life balance. It is comparatively less in
terms of take home salary. Hence, it should work on that aspect to become the overall market
leader. However, the employees of TCS seem to be highly satisfied which is a good sign that it
is retaining its talent.
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