Strategy for IT and ITEs companies

The dollar is soaring, thus the margins for IT and ITeS companies are reducing. They (Indian Companies) have a habit of profit margins of 20 %. The share prices are also based on similar expectations.

So what are the alternatives to maintain these margins

1. Increase rates -- less likely as there is more competetion and companies like Infosys are already enjoying premium rates
2. Increase productivity -- Redcuce attrition and reduce bench strength
3. Increase Business -- Capture newer markets and businesses
4. Capture Indian companies -- Indian non IT companies can be captured
5. Reduce costs -- reduce over heads, reduce variable costs, reduce fixed costs -- But for how long and till when? You can stop transport, tissue paper or free coffee but will that solve or open some other issues :)
6. Practice Lean Servicing
7. Increase the value add ( Do higher end job )
8. Climb up the value chain
More focus on consulting. Use your connections and start with freelance consulting. Once they are accustomed then you can start charging
9. Productise your services -- Now this is a new one... I think that the services that you provide to one kind of customer that you can provide to similar kind of other customer also. Hence make your services as a product and start selling it. Takes time. But can think of the same. This is the same model as the news agencies use to sell the news to various channels and news papers. Similarly try and sell similar researches to various clients :) INTERESTING ISN'T IT ? :)
10. Automate your services -- Let smart IT do more of your job
11. Collaborate with Captive IT companies and take their businesses


Anything else you suggest