Big Local Tech Buyers Push IT Vendors For Rate Cuts

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Indian companies are asking their information technology vendors to pass on the benefits of automation and improving technology in the form of rate cuts and outcome-based pricing, highlighting the need for Indian IT players to speed their move away from the labour-based model.

“When the first wave of outsourcing happened 6-7 years ago, people didn’t have much experience. Now that they’ve been through that process, they know where to tweak spending – and which parts of contracts to put on fixed price and which parts to ask for on outcome-based pricing and where the automation is happening,” Sanchit Vir Gogia, CEO and chief analyst at Greyhound Research, said.

Gogia added the banking and telecom sectors were increasingly looking at automation, as they are furthest down the outsourcing path.But other sectors are also looking at deriving the benefits.

To read the Full Article, click here: The Economic Times

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