Question-and-Answer Session
Operator
(Operator Instructions). Sir I have no questions at this moment. I will turn the call back to you. One moment please, I do I have a question from the line of James Friedman. Please proceed.
James Friedman - Susquehanna Financial Group
Hi, thank you for taking my question and congratulations on the numbers.
Vikram Gulati
Thank you, Jim.
James Friedman - Susquehanna Financial Group
I wanted to ask, how should we think about the onsite-offshore opportunities going forward. Is that a metric that you feel like that you can continue to develop and what the relationship there might be to driving the continued improvement in the operating margins?
Vikram Gulati
Sure. Great question Jim. I think the onsite-offshore ratio is clearly are very, very key determinant in driving up margins. I mean more offshore work is better from a margin perspective. But more importantly more offshore work is also better from a stickiness of the client perspective.
Let me first just calibrate this by saying that the numbers that we are putting up on the call or we're putting out in the press release are numbers from a revenue perspective. If you look at it from a headcount perspective, today our offshore percentage is as high as 75%. So we have a fairly high concentration of people in offshore and the work that is getting done from the offshore, so that's obviously happening.
Since our rates from an onsite-offshore perspective are tracking the one-to-five multiple, which is one $21 offshore versus $105 onside. A company with our kind of rates and our kind of parameters will take longer to move the meter much, much more significantly towards offshore.
However, clearly we are trying to push for that end as growth comes back. We think we will see much more improvement from an offshore percentage perspective, but clearly we are driving for more annuity business which will tend to be much more offshore-centric.
James Friedman - Susquehanna Financial Group
Okay. And also I wanted ask with regards to the utilization, maybe if you could explore the same discussion with utilization and that relationship to the operating margin?
Vikram Gulati
Sure again there is a clear correlation between every two or three points of better utilization to margins. I think we have reached a point where we will hold the utilization of the current level for the foreseeable future. And I think what has happened, what is more important to understand here, when you manage utilization there is a tendency to perhaps touch the muscle on the bone of the operating structure of the company. And we have been very, very cautious not to do that.
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