TCS seeks to leverage offshore presence to boost efficiency

In the quarter just gone, TCS' net margins saw a dip of 90 basis points to 25.6 per cent despite posting strong growth in revenues and profits

With rising subcontracting costs in on-site locations — especially in the US —weighing on its margins, TCS is looking to execute as much work possible from India, to raise the off-shore efficiency to as high as 90 per cent in addition to hiring locally onsite. 

Traditionally, the IT outsourcing services industry uses its off-shore base for service delivery to the extent of 70 per cent, while the remaining is executed out of on-shore locations in client geographies. Under its Agile business model, the company has started using its off-shore base up to the extent of 90 per cent which, along with