Indian IT Firms Focus on Improving Utilisation Rates to Boost Margins
Indian IT Firms Focus on Improving Utilisation Rates to Boost Margins The Indian IT sector is witnessing a trend of companies trying to increase their utilization rates to enhance their margins. Utilization rates, which refer to the percentage of employees working on active projects, had declined significantly in the past few quarters. In this article, we will delve into the reasons behind this decline and what companies are doing to address it. Declining Utilization Rates in the Indian IT Sector Infosys, India's second-largest IT firm, reported a gross utilization rate of 76.9% (including trainees) for the March quarter, which was lower than the previous quarter. Excluding trainees, the net utilization rate fell 7 percentage points to 80%, the lowest since the quarter ended March 2015. Wipro, on the other hand, reported a gross utilization rate of 72.8% for the fiscal year 2023, which was the lowest since fiscal 2020. Its net utilization was the lowest in seven years at 81.20%. ...