India emerges as ‘outcome sourcing’ hub
The $70-billion IT & BPO services industry in India is thriving on the well-established global delivery model (GDM) where cheaper cost is the key attractiveness. Under this model, the efforts of the Indian IT companies are paid in two main pricing mechanisms — time & material (T&M) and fixed price. However, all this is changing with the two key markets for the Indian IT industry — North America and Europe — under severe economic pressure, looking at ways and means to spend less on technology but still wanting the optimum results calling for innovative capabilities.
Chandrashekar Kakal, senior vice-president and global head, business IT services, Infosys, said: “India is now looked at as an outcome sourcing destination and this is a major shift.”
“The country is not seen being seen as a low-cost arbitrage but is becoming more of an outcome sourcing provider because of the capability, talent and solution that we have built over a period of time,” said Kakal.
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