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Infy sees demand for its new models

By BS Reporter in Chennai, Bangalore
May 29, 2009 09:00 IST
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Infosys Technologies, India's second largest IT services company, has officially announced offering its clients new engagement models including outcome based pricing and transaction based pricing.

Even though the company had been offering these models to clients for quite some time, it is now seeing 'more acceptance of these models,' especially when the global customers' are keeping their purse strings tight because of the global economic crisis.

"It was there for a while, but now we are getting more acceptance for these models as the customers want to do more by spending less," said Subhash Dhar, senior VP and executive council member, Infosys Technologies.

The company did not give the number of clients who have opted for these models. According to a senior company executive, clients are accepting these models as they ask for 'no immediate pay-out of cash' and 'pay money per transaction basis.'

These models can also be helpful for the clients to deal with the demand fluctuations and effectively manage their budgets.

At the same time, Infosys has assured to share the risk which will directly impact the business outcomes of the clients, said the company.

Analysts say that with the shrinking of the business volumes from key markets like the US and Europe, IT firms are now trying to come out with innovative business models which will help them in new client additions and retention of the existing clients.

Engagement models like these are especially helpful in getting smaller clients who always grapple with budgetary constraints.

Meanwhile, Infosys has said that the company is seeing good outsourcing business opportunities in India and the Middle East. During the last five months, the company has won three deals in these markets.

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BS Reporter in Chennai, Bangalore
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