Infosys changes pricing structure - Says change will make projects less manpower-dependent 

By Jayant Mishra @ Monday, July 14, 2008 9:36 AM

Section - Business/Financials

Infosys Technologies has resorted to a new method of pricing its software maintenance projects. The 'ticket-based' pricing will not only increase the company’s revenues, but also make its projects less manpower-dependent, says Infosys.

Starting this quarter, the company will start offering clients 'ticket-based' pricing, which the company claims will be a better alternative to fixed-price and time- and material-based pricing for software maintenance projects, reports Economic Times.

Commenting on the new tool, SD Shibulal, Infosys COO, said: “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 decline, 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.”

Under time- and material-based pricing, clients are charged according to the number of man-hours spent on a project. X