March 30, 2020
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The Pressure Points

The Pressure Points
  • Although volumes are expected to grow 30 per cent this fiscal, operating margins are under intense pressure.

  • Despite the excitement about offshoring, the high-revenue, low-margins onsite business is growing.

  • Geographical derisking strategy is not working and the share of revenues from north America is on the rise.

  • Global firms with Indian development centres are competing on billing rates.

  • Large orders from clients may actually translate into lower billing rates and a further squeeze on margins.
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