India IT firms enjoying outsourcing cash flow
Top Indian IT firms are all revved up with glistening quarterly profits to report, up by about a third from last year. Tata Consultancy Infosys Technologies head the list of companies riding the crest of the outsourcing wave.
The bigger software companies are projected to do better by the second half of 2005, though the smaller firms may have to grapple with manpower management and cost issues.
A rosy forecast has been given for TCS, Infosys and Wipro in the context of traction gain brought about by the manpower addition over the past quarters. Smaller companies however would have to contend with the cost of carrying manpower eating into the margins.
Even with global rivals such as Accenture and IBM pirating IT workers, Infosys, Wipro Ltd et al have managed to keep abreast the workforce demands by training low-cost entry-level employees in large numbers.
Analysts have cited the rise in US visa costs for work permits to have direct effect on the Indian software companies’ financial margins.
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