Journal of Business & Financial Affairs

Comparison of Top-Five India Based IT Services Providers through Dea Approach

Abstract

Prashant Dixit

The importance of manpower employed in IT companies is discussed and this factor is compared with top five IT Companies of India. Data for five years (from 2009 to 2013) has been collected and an analysis between Profit after Tax (PAT), and number of employees has been done. Thereafter, Data Envelopment Analysis between manpower and Profits has been done. The ratios of profitability efficiency have been calculated these figures have been compared and it has been shown that the number of employees has a very significant effect on profitability in IT companies.
DEA models can generate new alternatives to improve performance compared to other techniques. Linear programming is the backbone of DEA methodology that is based on optimization platform. Hence, what differentiates the DEA from other methods is that it identifies the optimal ways of performance rather than the averages.