2003-04 TARGETS

7 April 2003

Raju/SriRam,

2003/04 TARGETS

We discussed this last week, when I stressed the need for each consultant to do a “Net collection” of at least 12 times his/her salary.

One suggestion was that we should modify our incentive scheme & make it some kind of a “GROUP INCENTIVE” based on entire company’s “Net Collection” performance rather than, on an individual’s net collection.

I am willing to take a look at any such scheme & await your proposal.

In the meantime enclosed find

-    Annex: A

-    Annex: B (Same as A-except graphically)

These figures have been given by Asutosh.

You will observe that figs. Given are for “Net Billing”

& not for “Net Collection”

I am sure Asutosh can also give you figs for Net Collection for last 5 years.

However & feel the trend of Net Billing ratio, that we see, manpower cost will not change substantially.

Also if you feel that the figures are not exactly “Comparable” (apple-for-apple) then please get correct figures from Asutosh & re-plot. Also plot 2003/04. But one thing is clear.

We have to reverse the trend, starting 2003/04.

Please see, me as soon as you are ready.

STATEMENT SHOWING SALARIES/NET BILLING

PARTICULAR	1998-1999	1999-2000	2000-2001	2001-2002	2002-2003
	2493254	2543577	3891164	3891164	4635451
SALRIES	693254	743577	2091164	2080415	2835451
	1593254	1643577	2991164	2980415	3735451
INCENTIVES	0	18938	11859	16778	38568
TOTAL (A)	693254	762515	2103023	2097193	2874019
NET BILLING (B)	9812550	8264179	13694256	11798497	14502858
	3.93	3.24	3.52	3.03	3.12
(B)/(A)	14.15	10.84	6.51	5.63	5.05
	6.16	5.03	4.58	3.96	3.09

Annex: B/A = 5

3/5 = A

60 Lacs