According to me TCS made big Blunder ...just by reducing 1.5% how much TCS can save,unfortunately TCS even now accepting the work at 13 to 16 USD per hour for software application development, I really can't understand this kind of cheap mindset by Indian IT companies, dog fighting between Indian IT companies actually benefiting US Companies,why US corporation gives the work to India,just to save the money, just simply they are dumping the work on Indian company 70K USD job will be done in India at15K USD, whey Indian companies need to accept tooo low cost billing,if u quote more.where US companies can go,can they move to anohter low cost country..let them.Indian IT companies now a days all over world...you can handle the contract from some other country...just low coast can't survive in long run and need stop over entertaining US MNCs like GE....for EX : TCS 38% revenue comes from GE and GE is master in screwing the Billing rates by encouraging dog fight between Indian IT companies in the form of best practices....once GE use to pay 25 USD per hour now it came down to 13 to 16 USD per hour...still TCS quite happy to take up the contract at such a low price...and in other side cost in India going up rapidly...in this kind USD low and billing low, how companies can survive,at least now wake up TCS strategic business managers, wake up and start increasing billing pricess, software Business is not Charity for US MNCs,GE saved more than 1B USD through Outsourcing in recent times
RE:TCS Blunder
by atul srivastava on Jan 31, 2008 08:03 PM Permalink
Grow up Mr. Indian!. 38% from GE in a revenue of USD 4.3 Billion. Are you joking? Do you know anything about revenues, etc. What is your source of USD 13-16/Hr. Its a misleading information. The fact is GE would contribute less than 4% of TCS revenue even if its the largest customer.
RE:TCS Blunder
by Indian on Jan 31, 2008 08:10 PM Permalink
just go and ask TCS managers who is handling GE GDC contract and see the billing rates and consolidation especially from 2003 onwards...as far as I know TCS 38% of Business volume is from GE...GE total IT budget is close to 5 B USD...out of that 90% more than out sourced to india between all biggies some other like Patni and Mindtree consulting...
RE:TCS Blunder
by Rajkumar V on Jan 31, 2008 08:11 PM Permalink
TCS is running in profit. Billing rates are quoted in competition. In India 100's are in que to grab even on lower. TCS do not want to shut down shop, so it will carry til in profit.
RE:TCS Blunder
by Indian on Jan 31, 2008 08:15 PM Permalink
Yup , right Low billing doggy fights between IT companies it self a big blunder, this is why Infy clearly decided they d't want single customer business volume more than 10% of company overall revenue...in case one client reduces billing, whole company effects also Infy d't accept low billing rates i guess
RE:TCS Blunder
by on Jan 31, 2008 09:34 PM Permalink
FYI - Infy's onsite rates are the best among Indian IT firms. TCS pays peanuts and take work also for peanuts. Well said Indian!!!
RE:TCS Blunder
by Indian NGO on Jan 31, 2008 07:47 PM Permalink
The idea is to put the maximum number of resources into a project to cover up the reduction in the billing rates. There are companies that have 10 to 15 people in a project but to the client it appears as 20 or 25. Most of the companies are trying to hide the fact of a loss to save their market value. We are still in the "services" mode rather than trying to be innovative...
RE:TCS Blunder
by gaurav arora on Jan 31, 2008 07:44 PM Permalink
Yes I agree ..but tell me what product do we have in india..Could we even make an operating system..could we manufacture any technology...how many patents and research do we have in india.How much spent in india in research....when you do not own the house you can only enter the house as a maid or servant but cannot be be the boss
RE:TCS Blunder
by Indian on Jan 31, 2008 07:53 PM Permalink
Man Gourav,let me tell u few things...for Ex Vista, who developed it....80 to 90% In India...by wholm....TCS, Satyam, Infy and Wipro...MS in india follows I2I model...which is India to India....as far as I know most of Microsoft products recent times developing India with the help of 1tier companies in India....if indian companies d't accept low billing rate what Microsoft can do or GE can do or some other bigge can do...will they give to China...just talk to few Chainese guys...by the time u explain and he understands, u can sit and complete the work....IT is craze in india in reality just IT is not good for wealth creation...innovation is the one going to make a diff...this is where MS or GE or IBM is smart enough...our companies not. I personally seen how Indian IT companies works and US based works...research d't mena that just govt need to spend, that we also can do....we just need one laptop and innovative mindset and ability to handle our own mind first....we as indians tend to satisfy with decent job and we d't like to take any risk, this is the key reason for lack of focus on research
