software outsourcing

A blog related to software development company and offshore software outsourcing

Friday, June 09, 2006

Dark cloud to silver coating of Software Development

Dark cloud to silver coating of Software Development seems to create some problems for India. Harder billing rates and rising demand have the dig ringing at software houses of the country. That seems to carry on if IT companies of India can deal with a manpower crisis. It is true that India has a wide pool of IT talents and skilled labor force. But still there seems to be hike in the price for the Software Outsourcing services. Companies from overseas are now finding the remarkable rise in the price. In the extremely sanitary world of IT service companies, people dislike surprises. The annual outcomes of India’s top IT Outsourcing companies also seems good.
According to the results, IT giants of India are doing as they were predicted. IT Companies of the country are growing very well, profit margins of their business are strong, companies are hiring at great speed and amount and acquirement also continue at a steady pace. These are some of the reasons that helped the IT companies of India to grow as per the expectations. But still there was a surprise in the industry for some aspects. Operating margins indicate a material fall for all the top software exporter organizations, apart from Satyam Computer Services. While the fall was the quickest for Tata Consultancy Services (TCS). It is country’s top software firm.

Success of Software Development Companies

Other IT giant form India Wipro Ltd. also accounted 1.14% less operating profits than previous year’s business. This is a serious issue for the success of Software Development companies of India. Even Infosys Technologies, observed as India’s software giant, found its operating margin decrease by 79 basis points. IT Industry insiders criticize an unstable rupee and lower utilization ratio of skilled and talented manpower for the drop in margins for IT Outsourcing of the country. It also seems to be an alarming call to the Software Outsourcing companies for the surprising future.
Apart from this issue operations were effortless and regular otherwise for IT Outsourcing services. Country has more than enough skilled and talented manpower for Information Technology industry. But still the labor rate in the country is increasing steadily. It looks like that the talent of the country is under utilized and this seems to be the reason for rising in the prices of the India Software Development services. IT giants of the country also missed the predicted profit margins because of the under utilization of the talents.TCS failed to spot the $3 billion revenue spot by a whisker. It was announced by the CFO that they had worked for more working days in stead of about 220 days the company could easily have achieved the land mark. Still IT companies are really doing well for IT Outsourcing to the country. According to the Nasscom, all small caps and large caps IT companies can still increase their profit margin if the utilization of the talents is up to the mark.
Indian IT companies are probable to bag many large contracts, direct or through the sub-dealing direction, and grow well for Offshore Software Development globally. In the present market Indian four big IT giants are really doing well for IT services globally and also accounting the huge profit margin. Still proper utilization of the talents is expected from the Software Development giants.