Indian IT sector faces pay for results

The FT ran an interesting article expressing the views of Nasscom about the post-recession period.

The statement, from Nasscom’s head Som Mittal, that the Indian services sector will grow 15% to be worth $70bn this year revealed confidence that businesses are spending on IT services again.

Read the article here.

The article also has Mittal admitting that Indian suppliers have had to change since the recession. One of the key changes mentioned in the FT article is the increase in contracts where suppliers are paid in relation to results.

Bindi Bhullar, director at Indian supplier HCL Technologies says customers  are becoming more sophisticated in their purchasing of IT services and are looking for more outcome based pricing models. 

“As a result, the frequency with which executives approve major consulting deals casually during a round of golf is diminishing. Instead, several developing trends are shaping client expectations for the client-consultant relationship. These trends include more centralised purchasing, better information sharing among clients and higher skilled IT workers.”

Here is a blog post I wrote last year about paying for results.

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