Infosys, India’s second largest software exporter, is re-tuning its pricing strategy for a line of its business. Seeing success in some of its recent client wins, the company is pricing its services based on the outcomes it generates for its outsourcing clients, Samson David, V-P and Global Head, Platforms Business, told Business Line on the sidelines of the Nasscom India Leadership Forum.
Outsourcing deals
The company recently bagged a couple of multi-million dollar outsourcing deals with a US bank and a digital marketing company.
With the success of some recent client wins, the company is changing its pricing which will be based on outcomes that it guarantees for its clients. The company, apart from a change in its pricing, is also targeting Chief Marketing Officers who are in possession of larger IT budgets. Traditionally, IT companies have targeted the Chief Information Officers of companies but in the midst of a slowdown , decision making is shifting from the CIOs to CTOs. The rise in the number of consumers who are adopting digital technologies is leading the charge with a number of devices, technologies such as cloud computing, social media and analytics, according to Pradeep Udhas, Head IT and ITeS, KPMG India.
“This is making firms relook at their marketing strategies, which in turn is resulting in increased spending,” said David. Infosys, with its 3.0 strategy, is eyeing one-third of its revenues from e-platforms business. Platforms mean reusing existing technologies across different verticals and technologies, without having to rebuild from scratch.
The company, which has disappointed investors with low growth guidance for FY 13 in the third quarter, said the total contract value of its outsourcing orders increased to $603 million.
Recently, Nasscom said the sector would grow in the range of 12-14 per cent which is better than FY13, and export revenues are expected to grow by 10.2 per cent and touch $75.8 billion.
venkatesh.ganesh@thehindu.co.in
Keywords: Infosys, Nasscom India Leadership Forum, outsourcing deals, pricing policy, digital technologies
Comments:
Sure, good to make these noises. Since when did Indian companies had access to CIOs? They are known to sell to lower rung leaders, with CIOs not even knowing their names. Yes, CIOs of small to mid companies (<US$5billion) in revenue, may know them, but when it comes to the real large guys like Ford, Citi, Bank of America, etc., Indian providers have no excess to even senior IT leaders, forget about senior business leaders. But its a good start. They started really low and moved up in terms of access to senior management, they will end up accessing the senior most management soon and Accenture and IBMs of the world, who swing large-size deals based on their proximity to board members rather than their offering, will be challenged.
Indian IT companies have made advances towards relationships with CIOs, they off-
course can't compete with the likes of the IBM or Accenture as they do not share the
same cultural backgrounds. This is bound to change when Infy hires a white guy to
run the company as CEO.
Please Email the Editor