Non-linear revenue growth and emerging pricing models in Indian IT services industry: Outcome-based pricing

Abstract

For an IT service industry, a pricing model is a contract between a service provider and a client. The contact is created depending upon the type of services provided by the service provider. Typically more than 90% of the IT industry projects are contracted through traditional T&M and FP models but now they are moving toward managed services, transaction based and outcome based models. This progression is inevitable in IT industry. The model delivers through simply understanding client’s needs and services, establishing creative ideas, innovations and non-linear pricing models. This effort is taken to build long lasting relationships and upgrading the level of beneficial partnership mutually.