Infy pays employees Rs 101 cr in bonus

Infosys Technologies Ltd has doled out $23 million [Rs 101.5 crore (Rs 1,015 million), at Thursday's exchange rate] as bonus to employees. On an average, its 23,000-odd employees who were on the payroll on March 31 got $1,000 each as bonus for the fiscal. 
 
The technology major has also raised the average pay packet of its employees by 17 per cent for 2004-2005 and restructured the salary package by raising the variable component of the package, linked to employee performance. 
 
"All these will compensate for the absence of the employee stock option plan," Nandan M Nilekani, chief executive officer, president and managing director of Infosys, said in Mumbai. 
 
The restructuring of the salary packages essentially means that the company is unlikely to re-introduce the ESOP -- which has been suspended -- in future. It had suspended the scheme as there was no clarity on the treatment of ESOP expenses in the balance sheet. 
 
Besides, the norms for pricing ESOPs vary between India and the United States. Infosys employees also seem to have preferred a salary hike to an ESOP. 
 
Nilekani also pointed out that Infosys will continue to look for expansion through global acquistions. But when it comes to expansion of its BOP subsidiary Progeon, India could be the hunting ground. 
 
Nilekani said Infosys will be adding another 10,000

to its payrolls during the current fiscal. Globally, Infosys now employs 25,000 people. 
 
"We are adding local faces wherever we are present. The acquisition of the Australian company added 330 employees at one go. Overall, there are only 660 non-Indian employees on our payrolls. We will increase that," Nilekani said. 
 
Infosys recently bought a US consulting firm and an Australian IT services company. "We will continue to look for buyouts globally. We are looking for next generation IT service and consultancy firms which can offer strategic fits," he said. When it comes to acquisitions, the focus is not on India. 
 
"Why should we look for Indian companies? We have the brand, the technology and customers. We will not acquire an Indian outfit only for employees," he said. 
 
However, when it comes to its BPO arm, India can be a hunting ground. Nikelani, however, refused to identify targets or give a timeframe for acquisitions. 
 
"We have spent about $23 million on the acquisition of the Australian firm and another $23 million on the US consultancy firm. Besides, we have invested $5 million in China and another $5 million to develop a banking product," Nilekani said.