Indian IT companies headed for a rough future

Experts are predicting that the high profit margins experienced by the Indian IT companies will erode in the next 3-5 years.  And would settle at just around the 11-15% mark. Within the next two years, experts predict that operating margins will fall to below 20% (the average is 25% now for Infosys, TCS, Wipro and HCL Tech) and settle at a level that just about takes it past single digits. For comparison, in the quarter to September, the average operating profit margin for corporate India was … [Read more...]

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India's Education System – Corrupted, Inefficient, Dishonest and Failed?

India, unfortunately has become a country high on "symbolism" and "tokenism". And this is generally known as "Getting the Stamp". Therefore, there is a clamour to get in to the IITs. Since there were only 4 to begin with, and more couldn't be created, the Government came to the help of the hapless, stamp-starved parents of kids. They arbitrarily 'labeled' many more who weren't. Simply one day a college was called an IIT. To heck with the fact that IIT meant a certain quality of education and … [Read more...]

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Infosys in midst of Three-Phased Reorganization: Will it be a Game Changer?

Infosys is realigning itself. The entire realign work has been going on for last year or so. Broadly speaking there are 3 phases to it:1. Business Operations Restructuring: This has been completed. It affected roughly 55,000 people. Basically, in this phase the company's employees were aligned in Four Verticals: financial services and insurance; energy, utilities, communications and services; manufacturing; retail, CPG and life sciences.As per company leadership, this realignment has … [Read more...]

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Why Fall of Indian IT Companies is imminent?

On a typical project done by an Indian IT company, the resources in India are charged at an average of $25-35/hr. Some years back it used to be $45, but it has steadily fallen. The other component are the resources from Indian practice working onsite. These resources are charged around $75-145 / hr - depending on which company it is. Then come the resources hired in US and residing in US. These come upwards of $100/hr. Except for the "Consulting practices" of WIPRO and Infosys, these … [Read more...]

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