Improved Revenue per Headcount: Another Sign of Recovery in High-Tech Industry

Revenue per headcount increased during the past year, according to a recent study of leading high-tech companies conducted by Culpepper and Associates.

Revenue per headcount increased during the past year, according to a recent study of leading high-tech companies conducted by Culpepper and
Associates.

For the four trailing quarters ending in June, the median revenue per employee in software companies climbed 6.3%, from $189,000 in 2002 to $201,000 in 2003. The top 10% of software firms (i.e., the 90th percentile) enjoyed revenue per employee of $290,000 or more.

In IT Services companies, revenue per employee grew 5.1% while hardware companies closely matched this with a 5.2% increase.

Semiconductor firms enjoyed a 15.5% growth in revenue per employee (from $219,000 to $253,000), far eclipsing the productivity growth of our other high tech-industry sectors.