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IT firms like Infosys, Wipro rely on external subcontractors more than ever before 

 

Even india is getting in on the sub contractor act…

Amid rising onsite wages, high visa rejection rates and a politically-charged environment in the US, where a debate on outsourcing is waging, India’s IT firms including Infosys, Wipro and TCS are relying on external subcontractors more than ever before.

For the financial year ended March 2016, Infosys, Wipro and TCS spent more on parcelling off more customer projects to smaller vendors, according to their financial reports. According to top executives of these companies, most of the subcontracting work took place onsite in the US, resulting in higher expenses.

In the year ended March 2016, TCS spent Rs 7,823 crore on external consultants’ fees, compared with Rs 6,116 crore in the year-ago period. The subcontracting expenses as a percentage of revenue climbed up to 7.2% from 6.46% last year.

By Anirban Sen – The Economic Times

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