Offshoring rates question

[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

[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.

[mobi]

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.

[jim2406]

I've seen both fixed cost and T&M before, but rarely known how much money is changing hands.

I was recently privvy to a project where the daily rate was sub £100 (with work done in Laos) but also known work openly done in India, at rates of 500+....

[MPwannadecentincome]

Most look to do it fixed price rather than a T&M basis.

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.

[norrahe]

£130 - £150 a day at my clientco, they use cognizant

[OrangeHopper]

Some may quote a rate between £100 and £200 per day but my experience is that they need more people than the existing UK based team meaning the bottom line price doesn't necessarily represent a saving over the cost of that in-house team. Unfortunately, offshoring is often an edict and therefore projects have no choice.

[TheFaQQer]

Most look to do it fixed price rather than a T&M basis.

[jim2406]

To clarify, I'm not talking about what technical resources working for the offshoring company would earn.

I'm talking about what the offshorer would *charge* the blue chip for time and materials work, in the context of a long-term arrangement.

Is that what you're referring to?

[DocP]

Day Rate

Sorry day rate is usuall £100 -120

[DocP]

Offshore Rate

Generally in the range £ 9 - 13 per hour depending on experience.

[jim2406]

Morning folks,

I know this is a very vague, finger-in-the-air question, but does anyone have a very rough idea of what a typical large high-profile outfit (accenture, tata, etc) would charge for offshore development as a day rate in a long term relationship with a blue-chip company?

Cheers.