We have been using many apps and tools that we know which make revenue through a particular system, but have you ever thought about how these big IT companies even earn? They don't have any products, but they have 11 lakh workforce with huge office buildings. How are they even earning ?
Let's understand the IT company structure. Most of the work is done by freshers, which has 70% of the workforce who are constantly working and updating tasks given. Another 20% are managers and team leaders, who are constantly managing the tasks and monitoring employees and teams. The rest 10% are the decision makers and onboarding new projects and collaborating with companies.
Most IT companies are not product-based, but they sell employees to other companies for their needs. These companies are service-oriented, they hire engineers to handle servers for daily operations. Most of the work is in the USA and Europe to handle complex servers. They need engineers in large numbers, which in the USA and Europe cost them $100 to $150 for just 1 hour and for expert work monthly around $1,25,000 or more. It makes it expensive for banks, airline operators and all tech-based systems and servers.
So here comes arbitrary labour procedure, where Indian tech giants sign contracts to handle complex servers by providing a large workforce with just $40 per hour approx. They sign massive deals to operate such large systems, making it extremely profitable business. India is the only country which can provide a workforce at less price but has quality and talented employees. Making it a demanding sector for handling services, cities like Bangalore, Delhi, Pune, Hyderabad, Chennai have become key places for tech solutions. It is the time and server maintenance that makes it important. These servers are built only once, but they have to be continuously monitored and updated with time.
We might think: why can't those tech institutions directly come and operate and hire? Yes, they can do it, but starting such a complex hiring system, running for approvals and management of resources requires high pressure and investment. So, most of the western countries rely upon outsourcing operations and giving burden on other companies. After the launch of AI, the work which was supposed to happen in 3 weeks by a big team, now 1 senior worker can complete it in just 4 hours.
The requirement for human resources has been reduced since AI arrived. These tech giants provide a workforce and eventually make new tech systems and sell them to the world many times. Overall time, work force and maintenance of the server would create operations function smoothly and efficiently.
