Software rentals through subscription payment model are fast catching up among infrastructure companies for timely completion of projects with IT assistance.

Majority of the companies are adopting this business model for cost reduction, as India’s infrastructure industry today is facing hard times. With huge debts, companies are even unable to undertake new projects and are struggling to complete the existing ones.

Given the situation, IT is proving to be infrastructure industry’s best bet for survival as well as growth, says K.Varghese Daniel, Founder Director and CEO of Kochi-based Wrench Solutions.

“We are entering a new era of construction project management. Gone are the days when project management software meant CAD and MSOffice and MSProject. Today, there is software designed specifically for the full cycle of engineering, procurement and construction, which is as comprehensive as ERP, much more affordable and faster to roll out”, he told BusinessLine.

Wrench, he said, recently introduced a subscription payment model, which allows customers to use its software as a service (SaaS). The market slowdown has forced companies to shift focus from Capex to Opex to reduce cost. Hence, SaaS would enable customers to simply stop using the system if the project is discontinued, he added.

Wrench’s switch over to SaaS model signals an encouraging trend in the IT market, as it allows companies a risk free way to leverage IT benefits even during cost-cutting phases, he added.

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