.. Or A Peek Into The Future?
Interesting read … and I for one doff my cap to anyone that can achieve this. Massive kudos. In the reading, I happened to note three things …
1) Valuation : Over $1 Billion
2) Revenue : $80 Million
3) Total Staff Count : 700
Which means that revenue per staff member is roughly $115K per person Here’s an interesting chart …
This is from Business Insider
I think it is probably true that most of Soti’s staff are not in the West … and is a solid example of what is happening in employment today – and why. But there’s more … since in that Business Insider article, you can see the IT Sector is delivering $484,000 per employee, so Soti is way ahead of the average – but still have a way to go when you realise that Cognizant are down to $52,000 per employee!
Not only that, if the average revenue per employee is $52,000 – after you take out taxes, profits, buildings and all the other costs of doing business, how much is left to actually pay the people?
I will guess that average salary will be 50% of revenue per employee – and that is being very generous, it is probably lower.
If you are earning $26,00o a year in IT of any kind – I will guess that you are not working in the USA or most of the rest of the Western World.
This is a very different kind of company than most people typically think about …. (Read all about the man who built a $1bn firm in his basement.) … but definitely, a sign of things happening and still to come.
… the valuation is based on roughly a 12.5 revenue multiple – that is generous and it is also unclear where that valuation comes from, given that the company is still 100% owned. But that’s another thing.