What is the Revenue to Employee Ratio for an IT Services Organization?

Revenue to Employee Ratio - Productivity Calculations by GHIT Digital

 

This is an intertesting topic becuase there is no correct answer becuase it depend on Delivery Location. Productivity depends on Onshore Vs Offshore Vs Hybrid delivery plus accelerators, automation and past performance of that organization. 

 

That said, as Thumb Rule, for every $10M revenue @ 30% plus margin, an IT Services firm or Digital Transformation Consulting company may be having 50 folks. The roles and responsibilities of the entire team may include Management Team, Sales Team, Pre-Sales Team, SME Team, Marketing Team, Architectural Team, QA Team, BA Team and Development Team.

Here is metrics based on our experience on Employee to Revenue Ratio (ERR) or also known as Gross Productivity Ratio (GPR).

Total Revenue in $M                           

 Employees (FTEs, Consultants, Hybrid)

   
$10M 50 - 100 Employees
$25M 500 - 750 Employees
$50M 1000 - 1500 Employees
$100M 2000 - 3000 Employees
$2000M 4000 - 5000 Employees