Offshoring rates question

[TheFaQQer]

Really? But T&M is more attractive to them, potentially higher earnings and no risk - they are just supplying bodies.

It is the customers who normally don't like to pay T&M in my experience.

If you can bid it where the client is assuming that the bodies will be based on-site, you can hide it better at how much your internal costs are. So charge British rates for foreign workers.

Oracle used to have a policy of all big bids had to include a certain percentage of the work done by Oracle Solution Services India- sometimes on-shoring them if the client insisted on seeing people. In tough times, they would go with FP rather than T&M as preference because they could get people working and at least doing something rather than sitting on the bench doing nothing.

[kingshuk]

Tata, Infosys, Wipro, Cognizant, HCL etc. charge anything between $15 to $50 per hour depending on project. Some less well known vendors will charge as low as $8/hour. However, blue chip UK companies do not use them.

Most support roles are charged on T&M basis.

Most development projects [which are executed entire at offshore with no regular interaction with onsite client] are often charged on fixed price basis with payment required after each delivery milestone.

WHS.
In 2001/2002 after the dotcom bust I had seen TCS rates drop to as low as $30. Thats the lowest I've seen. But there is always price pressure in the outsourcing sector so it might had dropped more by now.

Haven't seen or heard ever $8 though

Edit correction: I mean its $30 per day. mobi seems to be quoting per hour