Star Performers during the bull run, IT companies are ready to take challenges in the bear run also. Tech Companies have managed to create million dollar revenues over the past few years are now part of market myth now. But the companies have affected badly during the last 12 months due to recession across the globe. The large cap companies such as Infosys, TCS, Wipro, HCL Tech, Satyam and hundreds of others get higher billing rates for their coding work Sure, the "consulting" work that has made them billionaire.
However, the bulk of the earnings still come from the coders/programmers'' billing rates. The slowdown which hits the IT companies hard have planed to to improve utilization rate. In other words, get more employees to do work for the clients. For an example, TCS'' utilization rate for the second quarter (excluding trainees) stood at 81%. Arguably, which mean nearly 19% or 19,000 of over 100,000 of its employees were not contributing to the revenues of the company during the same quarter. TCS now wants to improve its utilization rate to 83%, which will improve its margins and help battle the current slowdown.
The task what TCS is willing to do is something that all tech companies are trying to do. According to TCS experience, a typical software programmer works for about 8 years in a position where his serviced can be billed to a client. After that, if he does not move to very specific business units of the company, he moves to a supervisory, non-billable role.
However, the bulk of the earnings still come from the coders/programmers'' billing rates. The slowdown which hits the IT companies hard have planed to to improve utilization rate. In other words, get more employees to do work for the clients. For an example, TCS'' utilization rate for the second quarter (excluding trainees) stood at 81%. Arguably, which mean nearly 19% or 19,000 of over 100,000 of its employees were not contributing to the revenues of the company during the same quarter. TCS now wants to improve its utilization rate to 83%, which will improve its margins and help battle the current slowdown.
The task what TCS is willing to do is something that all tech companies are trying to do. According to TCS experience, a typical software programmer works for about 8 years in a position where his serviced can be billed to a client. After that, if he does not move to very specific business units of the company, he moves to a supervisory, non-billable role.
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