IT may see surge in offshoring biz

Indian software services exporters are likely to gain from a steady shift in offshoring business of their global clients amid the upheaval caused by the coronavirus pandemic.

With North America and Europe contributing as much as 60% of revenues, shifting business onshore will help trim costs and boost margins at these software companies.

The trend was reflected in the first quarter results of these firms. Wipro Ltd reported offshore revenue from services grew to 48.5% in the June quarter, from 48.2% in the March quarter, and 47.7% in Q1 FY20. Overall operational efficiencies and cost control added 100 basis points to Wipro’s margins sequentially.