<p>Bengaluru: Commanding higher pricing for technology contracts will be one of the ways Tata Consultancy Services looks to "further enhance" its operating margin that is already at a 12-quarter high, its chief financial officer said on Saturday.</p><p>"One way to increase is the revenue profile across products which you are selling. The high-end products mix goes up. Second is when deals come up for renewal, you structurally push for inflation-linked adjustment," CFO Samir Seksaria said.</p><p>During its fourth quarter results on Friday, the company reported a 150 basis point increase in its operating margin from a year earlier to 26 per cent on account of "disciplined execution" and lower subcontractor costs.</p>.TCS trumps D-Street estimates for Q4; announces pay hikes. <p>There are mainly two types of pricing models for contracts with IT firms, the client is charged for the number of hours an employee is deployed on a particular project or pricing is linked to the milestones or outcomes achieved in a specific project.</p><p>Seksaria also said any price increases would be "structural" in nature and will be used as a medium- to long-term strategy. "You can't go to a customer and say, I'm increasing my prices from tomorrow," he added.</p><p>However, India's largest software services firm expects a 150-200 basis point decrease in its operating margin during the year as it announced annual salary increases effective in April, Seksaria said.</p><p>But an influx of new hires at the lower end of the organization and higher productivity should be supportive for margins, he said.</p><p>On Friday during its earnings conference, TCS said it plans to hire around 40,000 fresh college graduates in the ongoing fiscal year, similar to what it did in the preceding year.</p><p>The company also reported lower-than-expected quarterly revenue on weak client spending in North America.</p><p>However, the company said it is expecting a "better" fiscal 2025 on a robust deal pipeline including a record $13.2 billion worth of orders in the reporting quarter. </p>
<p>Bengaluru: Commanding higher pricing for technology contracts will be one of the ways Tata Consultancy Services looks to "further enhance" its operating margin that is already at a 12-quarter high, its chief financial officer said on Saturday.</p><p>"One way to increase is the revenue profile across products which you are selling. The high-end products mix goes up. Second is when deals come up for renewal, you structurally push for inflation-linked adjustment," CFO Samir Seksaria said.</p><p>During its fourth quarter results on Friday, the company reported a 150 basis point increase in its operating margin from a year earlier to 26 per cent on account of "disciplined execution" and lower subcontractor costs.</p>.TCS trumps D-Street estimates for Q4; announces pay hikes. <p>There are mainly two types of pricing models for contracts with IT firms, the client is charged for the number of hours an employee is deployed on a particular project or pricing is linked to the milestones or outcomes achieved in a specific project.</p><p>Seksaria also said any price increases would be "structural" in nature and will be used as a medium- to long-term strategy. "You can't go to a customer and say, I'm increasing my prices from tomorrow," he added.</p><p>However, India's largest software services firm expects a 150-200 basis point decrease in its operating margin during the year as it announced annual salary increases effective in April, Seksaria said.</p><p>But an influx of new hires at the lower end of the organization and higher productivity should be supportive for margins, he said.</p><p>On Friday during its earnings conference, TCS said it plans to hire around 40,000 fresh college graduates in the ongoing fiscal year, similar to what it did in the preceding year.</p><p>The company also reported lower-than-expected quarterly revenue on weak client spending in North America.</p><p>However, the company said it is expecting a "better" fiscal 2025 on a robust deal pipeline including a record $13.2 billion worth of orders in the reporting quarter. </p>