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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?


To: John Howell who wrote (1403)7/10/1998 12:39:00 PM
From: Bob Trocchi  Read Replies (1) | Respond to of 4634
 
John...

>>Given that most service companies have margins in the 5-15% range and that would put revenue at 120-200K per employee. <<

I did a little research on Keane and Oracle Re: revenue per employee. I was surprised about Keane as I would have expected a higher number. Both however bear out your numbers.

KEA (Consulting and Servivce Company) Revenue Approx. 900M ( last 12 months was almost $800M so I added a little for their growth. Employees at 8000. Rev. per employee approx. $115,000.

ORCLE (SW + application company ) Rev. Approx. $7B, Employees 29,000. Rev./employee approx. $250,000.

Your estimated numbers for SW and Service companies are reasonably close to a couple of leaders. Thus, TAVA is in the ball park in that regard.

BTW, I did not try and carry out my calc. to precision but my numbers are close enough for estimating.

Thanks Again

Bob T.