The obtaining the need not be of the major concern the rise in unbilled that the Indian outsources. In increasing in the trade recivables and the unbilled revenue, it is simple reflects the changes in the business practices. The market shifting toward the fixed prices contracts. The Information Technology Analyst Abhishek Shindkar with the financial services firm of the ICIC Direct base on him the unbilled revenue was basically in the revenue for the work that they’ve done for the client for the which that not yet billed. With the unbilled revenue that currently accounting for the 17% to 33% of the total revenue, some of the India’s leading Information Technology firms has the gap between the receivables and the revenue of the growth, it has a widened for the few quarters now.
The consequences of the increasing market preference for the fixed price contact is the growth in the receivables and the unbilled revenue. The clients is tightening their Information Technology budgets. The more large scale transformational projects was being launched. The billings based on the milestone achievements instead of the traditional time and also the materials that was based in the contracts. It is generally more complex to take longer and to be billed, this revenue was often on not appearing until the next quarter. The contracts which is the customers was based in the number of the hours worked by the each staff member.
The milestone-based, represent the significant policy shift in India’s traditionally risk averse the Information Technology firms. It can be mutually beneficial in the fixed-price contracts. However the raise the risk in the clients could be delay the payments. They believe that the milestone have not been reached. It is missing that the delivery targets was rise in general in unbilled revenue does not mean the outsourcers. This is according to straightforward, the only inevitable lag between it, is the performed and the billing. This would not to occur the more straightforward BPO or the billed for time projects. In seeing the rise that unbilled the revenue for the outsourcer should not be warn to the customer away. This is from considering such of the firm.
In providing that there were no untoward impacts on the cash flow and the accounts that being managed carefully. The typical increasing of the recession or the times of the uncertainty was the unbilled revenue. In unbilled the growth has also seen the average of the debtor days. In the system the unbilled revenues was bound.
However, the long as they go in the line with the revenue is that the below revenue. Then if the revenues was going through at the slower rate than the unbilled revenues and the receivables then it will be the sign for the concern. The outsourcing is the one who can help the company who need an improvement, it also helps the company in a way that it find solution to every problem. The outsourcing also helps the economy of the certain country.
Reference:
http://nearshoreamericas.com/fixedprice-contracts-result-growing-unbilled-revenue/
