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It’s not only salaries:
Still, the cost equals almost 400 000 dollars per employee. That is a LOT of money. Even half that (twice the employees or half the cost) would still be a lot.
Yes, I agree it’s a lot.
I think that with “recruiting” and “HR services” they mean outsourced services, so maybe not all of it goes directly to the employees.
That is not that much in this industry.
I’ve got roughly 25 years in the software development industry and depending on what talent market you’re working in, that 400k may not even be enough for one engineer or architects salary.