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India's Cost Benchmarking Report for R&D Companies
International Market Assessment India Private Limited, May 2010, Pages: 50
Based on a detailed primary study of 7 companies in the R&D business, this report provides detailed comparative analysis of cost structures. Over 1,000 financial and operating metrics have been compiled, analysed and compared. 'A number of companies which increased their headcount achieved a decline in indirect costs per FTE, implying a tight control on overheads and sharing of infrastructure.
In general the largest cost component is salary (43-72%). The second highest component for some companies is related to facilities (up to 15%) and for some others it is related to travel (up to 26%).
A few companies, even those that do not work in night shifts, provide home-office local transportation facilities. Cost optimisation is often obtained by charging employees for partial recovery of transport costs, and also with route optimisation and type of vehicles used.
While it might not be feasible to reduce dependence on diesel generator sets, the findings show that companies with tight control of electricity usage through regular monitoring have been successful in reducing costs.
There is significant scope for improvement in the recruitment efficiencies of companies. The most efficient company is almost six times as efficient in the recruitment process compared to the least efficient company.
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