Infy looks for new ways to increase revenue productivity

Bangalore, July 25

While negative sentiments in the market keep customers from increasing IT spends, Infosys Technologies Ltd is using newer business models to enhance revenue productivity.

Rather than just Fixed Price and Time and Material contracts, India’s second largest IT services provider is looking at creating more industry-specific solutions where it can sell the Intellectual Property Rights based on transaction or use.

In this type of contract, the company charges the client based on transaction, said Mr V. Balakrishnan, Chief Financial Officer, Infosys. He said the revenue productivity would be higher in these kinds of deals.

Infosys has developed solutions for different verticals like retail and financial services. In each vertical, the company is trying to develop solutions that are domain specific, Mr Balakrishnan, said.

He said the company has already won a couple of such deals. The aim is to increase the proportion so that Infosys can boost the overall revenue productivity, he added. These contracts are transaction based, rather than effort based, Mr Balakrishnan added.

In the BPO business, Infosys has introduced the Platform BPO concept that allows customers to follow the pay-as-you-go pricing model. In April, Mr Radhakrishnan A., Head (Strategic Platforms, Solutions and Alliances) had told Business Line the adoption of the new model would be higher during the recession because of its flexible cost structure.

The company is also trying other means to increase revenue productivity. “We are looking at enhancing services like consulting and enterprise solutions, which has better revenue productivity,” said Mr Balakrishnan.

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