Infosys Tech’s new engagement model sales may rise to $500 million

BANGALORE: India’s second-biggest software exporter Infosys Technologies, which currently derives around $165 million from new engagement models, sees revenues from such engagements to be around $500 million going forward, the company officials told financial analysts earlier this month.

These new engagement models (NEM) include application and outcome-based pricing, transaction-based pricing and platformbased solutions that can be used to serve multiple customers without having to deploy additional software engineers. “Infosys currently has 84 clients in NEM model with deal size of $165 million. The company is currently looking at newer NEM opportunities which would be greater than $500 million to be executed going forward ,” financial brokerage firm Angel Broking said in a research note on Wednesday.

Infosys’ efforts on the non-linear front are also expected to pay off over next five years. Revenues from new, non-linear initiatives will contribute 33% of the company’s revenues, from around 5% currently.