Indian IT firms may have to cut prices further

Source:BusinessStandard
Already working on thin margins, the information technology (IT) services industry in India will have to cut prices by 5-20 per cent over the next three quarters, say analysts.

Global clients continue to keep purse strings tight and very few deals are coming from traditionally large markets like the Americas and Europe, which account for almost 80 per cent of revenues of most Indian IT firms.

The billing rates of most Indian IT firms in the third quarter were either flat or were cut, compared with the second quarter of the current financial year. For instance, Infosys’ pricing in Q3 came down by about 1.8 per cent compared with the second quarter. The pricing for Mindtree in Q3 was almost flat when compared with Q2.
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