Processing .....please wait.. 
The article has been forwarded.... 
Retrenchment steps to bring techies back home
By siliconindia
|
Monday, 10 November 2008, 17:24 IST |
8 Comments
Chennai: With IT firms incessantly moving more employees offshore, the techies employed on foreign shores may soon come back to their homeland. "While the revenue per employee is almost the same onsite and offshore, the cost per employee is lesser offshore, so it gives companies better margins," says Frost & Sullivan's ICT practice Deputy Head Kaustubh Dhavse.
As a result, the firms are opting for reviewing the projects to assess which of them can be moved offshore, benched or which can be done away with, for better margins. As reported by Economic Times, a TCS employee, posted in U.S. said, "It has been barely three months since I moved here, and we have been asked to present our projects for review." Infact, the company's current offshore and onsite ratio stands at 70:30. This trend of off shoring can result in lowering of the cost per employee while the revenue earning per employee remains the same. For instance, a company could get Rs 12,000 of revenue per employee from an onsite location where the cost would be 
10, 000. But by adopting the offshore model, while the same revenue can be retained, the cost per employee could be brought down to 5, 000. Infact, apart from the employee cost factor, there are certain high-growth areas which tends to make a company shift to the off shoring like remote infrastructure management (RIM), BPO and testing are more offshore friendly.
However, there are employees who have not been touched by this trend. "It's true that we keep hearing about projects being closed down or sent to India; but it has not happened to my project, which makes me think keeping a project depend only on the relationship we build with the client," a Cognizant employee working in U.S. said
10, 000. But by adopting the offshore model, while the same revenue can be retained, the cost per employee could be brought down to 5, 000. Infact, apart from the employee cost factor, there are certain high-growth areas which tends to make a company shift to the off shoring like remote infrastructure management (RIM), BPO and testing are more offshore friendly.
However, there are employees who have not been touched by this trend. "It's true that we keep hearing about projects being closed down or sent to India; but it has not happened to my project, which makes me think keeping a project depend only on the relationship we build with the client," a Cognizant employee working in U.S. said
