Infosys looking for new billing models to protect margins
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By PTI |
NEW DELHI: IT bellwether Infosys has started using a new billing system offering clients flexible schemes and protecting its margins.
Most of clients are now billed on the time and material based contracts (effort-based model) model under which Infosys charges a client based on the number of hours put in by the employees on a particular project.
"We are pushing the new model across the client verticals. Over the next one-two years the company expects that about 5-10 per cent of the revenue to come through the new model," Infosys Senior VP and Executive Council Member Subhash Dhar said.
In the last 6-9 months the company has signed 12-14 new clients under the new engagement model. "We have a large pipeline of deals under the new model," he said.
He further added that this model would help Infosys arrest the decline in margins.
Infosys in its yearly guidance had said the operating margin for the financial year 2009-10 is expected to decline.
Most of clients are now billed on the time and material based contracts (effort-based model) model under which Infosys charges a client based on the number of hours put in by the employees on a particular project.
"We are pushing the new model across the client verticals. Over the next one-two years the company expects that about 5-10 per cent of the revenue to come through the new model," Infosys Senior VP and Executive Council Member Subhash Dhar said.
In the last 6-9 months the company has signed 12-14 new clients under the new engagement model. "We have a large pipeline of deals under the new model," he said.
He further added that this model would help Infosys arrest the decline in margins.
Infosys in its yearly guidance had said the operating margin for the financial year 2009-10 is expected to decline.
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