Political climates in both the US and India may impact our Labor Rates in 2018. The new US administration has promised tax cuts for businesses, but the GST in India will increase our tax burden. The uncertainty around taxation in both countries means that we expect our labor rates to increase in 2018.
In 2017 we again doubled our previous year revenues, smashing expectations. New enterprise clients provided the largest increase in our revenues, as well as the addition of Augmented Reality (AR), Virtual Reality (VR), CRM and Business Intelligence (BI) services. We have also made a brief foray into digital ledger technologies (DLT), which we expect to explode in 2018. Most notably, Prospus incubated and launched VesselWise into the Florida yachting market, catching the attention of the biggest players in the market. Under Ragsdale’s leadership, Prospus entered into a technology partnership with MarineMax, the largest boat retailer in the world.
In 2018 we will continue to refocus on up-market technology services. Website development, while still an essential service for companies represents, has continued to slide into single-digit significance for our revenue. The vast majority of our work continues to be in web and cloud apps. Projects using technologies such as Node.js, React.js and ReactNative are our fastest growing segment of services as businesses embrace JavaScript-based frameworks. Labor shortages in the Indian market for these skills have increased costs, and will be passed onto customers as higher labor rates.
Prospus will continue its expanded loyalty perks program for loyal customers in 2018. Our incentives package for startups has received ringing endorsements from our investor partners, and will be continued as well. Overall, customers should expect to see modest increases in our labor rates. However, our offshore services still represent a 30% savings over on-shore options.
We will publish our revised 2018 labor rates on January 1, 2018. If you would like a copy, please send an email to solutions@prospus.com. If you are our current customer, or have already joined our newsletter, you will receive our labor rates through email.
