35. REALIZATION PER RGFTE: In simple words, itcan be defined as the contribution made to the total revenue by each RGFTE employed by the company. Realization per RGFTE = Production revenue Production RGFTE Head count
38. SALARIES AND BENEFITS: While calculating salaries and benefits, total of all kinds of salaries paid during the year is taken. Cost Driverfor salaries and benefits is the total Head Count of the COE. Salaries & Benefits per RGFTE = Total Salaries & Benefits Total Head Count
39. Figure No. 4.2: Any significant deviation seen in the cost during the contract period.
40. Figure No: 4.3: Cost line that shows maximum increase according to the team.
44. IT EXPENSES Cost driver for IT expenses taken is SU, i.e. total number of work stations being used at one time. IT Expenses per SU = Total IT Expenses Total Work Stations
46. OTHER EMPLOYEE COSTS: Training Recruitment Other expenses Cost Driver for other expenses taken is HC. Total of HC up to band 4 and band 5 is taken into consideration. Other expenses per HC = Total Cost Total HC (Band 4 & 5)
52. On an average company has inflation clause in nearly all its accounts.
53. Company is charging on an average an inflation rate of 5% on fixed rate basis from its clients.
54.
55. India contributes 72% in the total operations carried on the company as a whole.If the inflation continues to rise at the same pace and company continues to apply the cost cutting at the same rate, the profitability of company has a huge possibility to decline in the future.
56.
57. There are some accounts where no inflation clause is charged. Company should try to negotiate with the clients in order to introduce an inflation clause.
58. If possible, negotiations should be made that during the contract period with completion of every year there should be some increment in the inflation rate provided to the company by its clients.
