TCS to up billing rates for existing contracts by 3-5 pc (Tata-India)

[OhioChick]

New Delhi, Nov 24. (PTI): The country's largest software exporter, Tata Consultancy Services (TCS) is increasing its billing rates for existing contracts, up for renewal, by 3-5 per cent while for fresh contracts the rates will be higher by 5-10 per cent, company CEO S Ramadorai said today.

TCS shares were trading at 0.62 per cent up at Rs 1151.25.

"If there is an opportunity to increase the billing rates in the existing contracts, we will do so. In fact in all contracts (existing), there is contractual clause to renegotiate the rates when it is up for renewal. When there are fresh new contracts and competency is involved and the customer is willing to pay for the expertise, we will raise the rates. For existing contracts up for renewal, we will raise the rates by 3-5 per cent and for new ones, the hike will be 5-10 per cent", the CEO said here on the sidelines of a TCS event.

The move, depending the on the nature of the contract, will have an impact on its topline.

TCS, which recently bagged a $ 100 million outsourcing deal from US based healthcare major Kimberley Clarke, is reported to be close to bagging a multi-million dollar deal from IMF.

http://www.hindu.com/thehindu/holnus/006200611241610.htm

~snip~ TCS also bagged a deal from Eli Lilly to establish Medical Information Sciences Center in India to advance Lilly's clinical research and development. Lilly is a leading, innovation-driven US corporation committed to developing a growing portfolio of best-in-class and first-in-class pharmaceutical products. The deal is believed to be a $ 35 million dollar worth and multi-year engagement.

[Greyhound]

1. And enrollment for technical programs in our universities is down 70%

from its peak 7 - 8 years ago. Hmm, I wonder why... :banghead:

[brokensymmetry]

3. That's right. And it will stay down, if the students

have half a brain.

I got a MSc in computer science. Oh, it was a nice,
hot commodity for a time. More and more, it's becoming
a worthless degree. I should have studied something
worthwhile...say, Latin, or Medieval poetry, or
basket-weaving.

I will NEVER pursue more technical degrees or
training. I've been lied to twice by the power
structure over the years, and I swallowed their
lies hook, line, and sinker. No more. Industry can go
to India (or China, or Vietnam, or the South Pole) for
their technical workers and enjoy the results.

Well, I'm getting another degree. And you can bet
it isn't in a technical field. The classes are easier,
the professors nicer, and - surprise, surprise - the jobs
pay better. They're more available, too.

I have a very special gesture for U.S. industry with
their outsourcing. I bet people can guess what it is.

[msongs]

2. out sourcing will SAVE $$$ - so much for that lie eh? US jobs killed AND

costs are still going up for the corporations who fled the country. the worst of both worlds.

Msongs
www.msongs.com/political-shirts.htm

[Dick Diver]

4. There are many problems with current outsourcing models, but

price is not necessarily one of them. A TCS (or equivalent company) Programmer/Analyst, proficient (and actually good) in and with, say, 5 years experience in current technologies like Java, J2EE, C#, .NET will bill at approximately $25/hour for offshore and $70/hour for a more senior person onshore (typically for a limited time). This is significantly cheaper than the equivalent US resource. Even strategy consultants from Indian firms (although not necessarily Indian themselves) bill out for rates from $175-$225/hour, much less than the equivalent McKinsey or Deloitte resource.

The model breaks down in other areas, however. For example, management of onshore/near-shore/and offshore resources requires significantly more resources than traditional management models. Indian personnel have not, to date, proven terribly proficient in such strategy, planning, governance, and analysis areas, such as Data Architecture and Strategy, EAI, COBIT, Business/Technical Alignment, etc. Finally, onshore continuity is hampered by the limited nature of the work visa typically used (3 months).

[Trillo]

5. Industry and corporatist is are prepping for the calls for minimum

wage raises and upping the salaries of the greediest professional classes first.