Sunday, May 15 2005 15:06 Hrs (IST) - World Time -

Bangalore: New economy companies are benchmarked by the quality of manpower they possess, for which software major Infosys has set a value in money terms.

The 36,750 employees of India's second largest software exporter have been valued at Rs 28,334 crore ($ 6.4 billion), while its software professional numbering 34,747 are valued at Rs 26,550 crore. The remaining 2,003 supporting staff have been valued at Rs 1,784 crore, Infosys said in its 2004-05 annual report filed with the US Securities and Exchange Commission.

Infosys said it has adopted the Lev and Schwartz model to compute the value of human resources, which is monetary-centric and is based on the likely future earnings of an employee till his retirement.

Infosys in the previous fiscal had valued its human capital Rs 21,139 crore. It then had 25,634 employees, comprising 24,110 software staff and 1,524 support personnel.

Infosys revenue from software in 2004-05 was Rs 7,129.65 crore, while its total employees cost was Rs 3,539.11 crore.

Infosys said the valuation has been based on employee compensation including all direct and indirect benefits earned both in the country and abroad, the incremental earnings based on group and age with the future earnings being discounted at 13.63 per cent which is the cost of capital for the company.

While non-human capital is recognised as an asset and therefore, recorded on books and in financial statements, the human capital is ignored by accountants, it said.