iGate CEO Phaneesh Murthy aims to shake up IT industry billing model

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iGate Corp Chief Executive Phaneesh Murthy.  (Reuters) iGate Corp Chief Executive Phaneesh Murthy. (Reuters)
SummaryAnalysts expect iGate's earnings to grow the fastest among key rivals including Infosys.

of its overall offering and not as a driver of pricing.

"Pricing model could be anything, so you keep it aside," Kakal said on the sidelines of an industry event on February 14.

Murthy, who still owns Infosys shares from options he received when he worked there, argues that outcomes pricing is a better deal for clients and enables him to answer questions he said frequently arose at his earlier employer.

"When I was in Infosys, while it had a great model, the four or five questions which customers always asked me, which I couldn't find an answer to were: you learn at our cost, you are putting junior people on the job, you are getting paid whether we are successful or not, you are getting paid whether the project meets its business case or not," he said.

But for some clients, simpler may be better.

"I think that model which he's espousing, while attractive or sounding attractive, is going to be increasingly hard," said Everest's Bendor-Samuel. "If you've got a simple model operating right next to it, the larger market will opt for simplicity."

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