- Published on August 22, 2025
- In IT Services
The RPE Divide: Giants Build Value, Mid-Tier Builds Volume
Mid-tier IT firms may be growing revenues, but without automation and IP monetisation, its per-employee productivity is capped.
Image by Nalini Nirad
- By Smruti S
Mid-Tier IT firms, despite strong revenue growth, haven’t seen a significant increase in revenue per employee (RPE) compared to the largers players in the industry. Mid-tier companies such as LTIMindtree and Coforge are growing revenues at 15–20% year-over-year (YoY) but have not matched this pace in RPE expansion.
In contrast, Infosys and HCLTech have delivered among the highest RPE CAGRs in the sector, with Infosys achieving ~13% over six years. With mid-tier IT, Persistent Systems stands out, recording 58.2% growth in RPE since FY2022, the highest among peers.
A factor to consider is that the employee growth rate in mid-tier IT firms is much greater than that of the ‘Big Five’ of India’s IT industry. But is this the only factor at play? Analysts report that s
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Smruti S
Budding journalist covering AI and Deep Tech. Keen on covering stories at the intersection of Technology, Governance and Social impact. You can contact me at smruti.s@analyticsindiamag.com
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