IT firms shifting more work to India to cut costs

TCS has called back over 1,000 employees as a part of its focus to increase offshoring work

 

Partly an answer to downturn, political pressure; trend should shift again, say analysts. To save costs for themselves and their clients, information technology firms in India have started increasing the work done from Indian shores (known as offshore). In some cases, these IT companies have even started calling back onsite (on foreign shores) Indians.

 

India's largest IT firm Tata Consultancy Services (TCS), for instance, has called back over 1,000 employees as a part of its focus to increase offshoring work. Infosys Technologies and Wipro have called back a similar number. "We achieved our overall target of 45 percent offshore leverage, an improvement of 310 basis points on an annual basis from Q4 of '08 to Q4 of '09," said a TCS spokesperson. Part of this gain is attributed to costs saved due to employees shifting back to India. Infosys, too — while posting its fourth quarter results — mentioned that in a survey among its customers, 22 percent said there will be a slight increase and 5 percent said there will be a more than 10 percent increase, in offshore spending.

 

Source: Business Standard