| "There has been a marginal increase in billing rates in the last few months but since 93 per cent of our revenues come from existing contracts (those that have been signed over a year ago) we are yet to feel any impact of the improved rates," he said. |
| But the good news comes with a caveat, the billing rates may revert to the largely prevalent levels when new clients ramp up their business. |
| A senior official with a leading IT company said, "pilot projects are coming in at a slightly higher rate but once the client decides to ramp up his business, he will exercise better bargaining power and may ask for lower rates." |
| Also, only a rise of 5 per cent or above in billing rates is expected to impact the topline of IT companies as a 1-2 per cent increase will be offset by growing wage bills. Salaries across the board are on a rise with middle level salaries up nearly 10-15 per cent over last year. |
| In the 2004 fiscal Satyam's billing rates, believed to be around $22 per hour, were down 1.7 per cent year on year and there was a small dip in the fourth quarter rates compared with third quarter of the same year. |
| Industry observers also confirm an upswing in billing rates. "New contracts are coming at a slightly higher rate but the proportion of new contracts is very small and might be around 12-18 months before the change reflects in the company's topline," said an analyst. |
| Satyam is not just banking on increased billing rates to improve its performance this fiscal year. |
| The company finished the 2004 fiscal with 101 Fortune 500 clients and hopes to ramp up business with these companies in 2004-05. Currently Fortune 500 clients account for 68 per cent of Satyam's revenues. |
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