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Infosys brings 'ticket-based pricing' system for software maintenance
By siliconindia
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Wednesday, 16 July 2008, 00:46 IST |
26 Comments
Mumbai: Infosys, one of the major IT companies in India, has developed a new method of pricing software maintenance project, reported The Economic Times.
According to the new method called 'ticket-based pricing', a customer's pay will be based on certain parameters such as whether the client request or 'ticket' that is raised is for a small enhancement in the software application, a big enhancement or a bug-fix.
Earlier the methods used for pricing were fixed price and time and material-based pricing. Under the time and material based pricing, customers are billed based on the number of man-hours spent on a project, while under the fixed price, the customer pays an agreed price that doesn�t vary with the manpower deployed on the project.
SD Shibulal, COO, Infosys, said that a software application becomes more stable with time. But if a client has opted for a fixed price model, then even after the application becomes more stable and the number of requests decreases, the same price has to be paid. Ticket-based pricing will give them the flexibility to change that and reduce the total cost of ownership.
Many IT majors have been trying to decrease the dependence of revenue growth on manpower addition. But this is for the first time such an attempt has been made to bring a transaction-based pricing model to traditional ADM projects, which account for a bulk of the revenue for Indian IT service providers.
In the infrastructure management services also Infosys has come up with device-based pricing or pricing that is based on the type and number of servers, PCs and other devices.
"We will offer it to new clients and existing clients, based on their comfort. Client comfort will be the most important thing," he said. Infosys is now focusing on getting more deeply involved with clients and adding more value to them, shibulal told about the new method.
The new move is expected to increase the revenue without a proportional increase in the number of employees.
