IT companies are offering to reduce the overall project cost by increasing the offshore and fixed price component
Clients of IT companies are asking for discounts up to 15 percent while renewing their contracts, says a report by brokerage firm Asit C Mehta.
"Clients are asking for a discount of 4 percent to 15 percent on billing rates at the time of contract renewal," the Mumbai-based brokerage firm said in its IT sector update.
However, the report said that IT companies are offering to reduce the overall project cost by increasing the offshore and fixed price component and they expect the average billing rate discount to be flat to 6 percent in FY'10.
"Considering IT companies' plans to honour their campus offers in FY'10 and the recent drop in the voluntary attrition rate, the utilisation level, including trainees, might drop further in FY'10," the report said.
Source: Financial Chronicle
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