Source:www.thehindubusinessline.com

Tata Consultancy Services (TCS) plans to set up its third development centre in China by the end of current financial year to support its growing clientele in the local market and also the global customers in that country.

TCS expects to scale up its headcount by five-folds to around 5,000 from the present 1,000 by 2010, said the Chief Operating Officer, Mr N. Chandrasekaran, on the sidelines of the Nasscom Quality Summit in Bangalore on Friday.

The company currently operates two development centres in Beijing and HangZhou and serves close to 20 global clients from China.

Commenting on the market potential, Mr Chandrasekaran said: “China is a fantastic market and the company is seeing good momentum in that country”. Further, TCS would continue to scale up its delivery centres in Mexico and in Eastern Europe. “We may look at opening a second centre in Hungary,” he said.

Stating that the impact of the US sub-prime crisis on TCS has been negligible, Mr Chandrasekaran said the outsourcing demand continues to be strong with several deals in the pipeline. “However, we are keeping a close watch on the US economy,” he added.
Offshore revenue

Meanwhile, TCS is aiming to improve its operational efficiencies to offset the impact of currency fluctuation and wage inflation on its margins. It is planning to increase its offshore revenues by around 400 basis points from 41 per cent to about 45 per cent over the next four to eight quarters by moving more work offshore, he said.

Ruling out any pricing pressure in the short-term, Mr Chandrasekaran said the company has managed to get an increase in pricing from both existing and new customers.

You can outsource almost anything. Maybe you don’t know yet, but it’s true. IT development outsourcing isn’t much different than any other kind of outsourcing. It is important to weight your current in-house capacity before you plan to begin with a new IT development project. In case your experience and budget allows you to cope with the task without resorting to any outside company or organization, then doing work on your own becomes worth consideration than getting your project outsourced. If you are still confused about your decision then you must consider advantages of outsourcing.

Mostly, outsourcing service providers offer you higher quality services at a lower cost. This makes the advantages of IT development outsourcing apparent. Outsourcing IT development is most effective way to extend your budget. While considering outsourcing in IT development outsourcing the planners mostly aims to cut down the company’s expenditure by 30%. Despite the risk of failure there is great scope of success and benefits that are otherwise impossible for you to attain on your own.

Outsourcing is the only way to get your required state-of-the-art IT solutions worked out and innovations implemented with small losses. It will save you from the fear of retraining your employees (or even hiring new ones) and paying for re-equipment.

Cutting your costs and advancing the quality of the services you extend will enable you to expand the competitive capacity of your business making this simple argument a crucial one.

When you outsource IT development to an outside company you are able to concentrate on your core activities in a better way without worrying about the project that you are getting outsourced. You won’t be able to completely forget all about the project or its part that you have chosen to outsource as soon as you sign a contract with an outsourcing service provider, but you won’t have to get scattered, either.

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