Source: Rediff
Infosys Technologies on Friday said it was developing new businesses that were moving away from the traditional outsourcing model of charging clients based on the number of staff needed for a job.
For example, the company was introducing a “software-assisted-services” business unit under which, rather than just developing software and then handing it over to the client, Infosys would retain ownership of the software and charge the client on a pay-per-use basis.
This saves the client the cost of maintaining and hosting the software while Infosys gets a longer-term revenue stream out of the product.
The initial software development phase is labour-intensive. But, after that, the need for large numbers of expensive software engineers trails off even as revenue rises.
“The tail is much longer – you continue [to] get revenue as long as they use the software,” Mr Gopalakrishnan said.
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Filed under: IT Outsourcing, Rediff | Tagged: Infosys, IT Outsourcing, New Pricing Models, Rediff
