Also on your point of giving away huge dividends and whether they require money for expansion… maybe you are right. But in some of these companies which develop high end solutions for their clients, the client is ready to pay more margin as there aren’t too many competitors in India for that. In US yes, they will face a lot of competition but then the service cost from US company would already be quite high, so they would choose Indian company.
They don’t need to retain profits today to expand tomorrow. For them expansion is as simple as hiring employees and handing out PCs to them. The incremental revenues from clients are sufficient to fund that much.
| Subscribe To Our Free Newsletter |
