TCS has managed to achieve offshore revenue at 45% of overall revenues- is looking to push it further
The fourth quarter of the previous fiscal was one of the most difficult quarters for the Indian IT industry as a whole. Though companies such as Tata Consultancy Services have managed to increase the offshore component of revenues, pressure on pricing and ultimately margins still continue.
For more insight on the demand-side issues facing the IT industry, Business Line caught up with S. Ramadorai, CEO and MD of Tata Consultancy Services.
Forty five percent of your customers are seeing a 50 percent decline in profits. How do you cushion yourself from the impact?
The only immediate plan is a lot of offshoring, and lot more of strategic initiatives where we can take cost out of client organisations.
Are you satisfied with the present offshore-onshore revenue ratio (45:55)? Do you think it can cross the 45 percent barrier, say to 50?
Offshore revenue at 45 percent of overall revenues was the target which we have managed to achieve. Definitely, there is scope to push it beyond 45. I do not know whether it would be 50 plus, but upwards of 45 percent (of overall revenues) does look feasible.
Source: The Hindu Business Line
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