Numb3rs: Higher percentage of revenues for US firms coming from non-US geographies
SOURCE: New York Times
DATE: April 20th, 2010
| % NON-US Revenues | ||
| Year | 1999 | 2009 |
| Intel | 57% | 82% |
| IBM | 57% | 64% |
| HP | 55% | 64% |
| Oracle | 49% | 56% |
| Apple | 46% | 51% |
| Cisco | 39% | 50% |
| Microsoft | 30% | 43% |
| Accenture | 64% |
Now compare this with US based revenues of Indian Offshore firms
| US Revenues | ||
| Infosys | 66.10% | |
| TCS | 54% | |
| Wipro | 57.10% | |
What does it mean ?
Indian based firms still heavily dependent on US markets for their revenues. This is given the basic component of their offering, which is all structured around leveraging low cost location talent arbitrage for serving higher cost based clients (aka US, UK, western Europe). Plus the fact that the total spend in US for IT, Outsourcing is significantly higher than that say in India.
For multinational firms globalization opens up additional revenue streams outside of the US as is evident by their growing revenue stream in non-US locations. With firms like IBM with a total employee strength of 400,000+ and offering services globally, location is becoming less important for delivery as they move towards seamless delivery model. A number of the global firms will continue to redistribute their staff for delivery as they build global delivery models and make them integrated. So job creation by these firms will follow a similar trend in their revenue growth internationally, number of opportunities created outside of the US will be a higher percentage of the net job addition for Multi national firms.
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