Indian IT looks at fixed price deals to squeeze higher margins

Indian IT services firms such as Wipro, Infosys, Cognizant and Mindtree are increasingly signing fixed price contracts with clients as they look at using optimal resources and automation to deliver software projects, to combat slowing business in traditional services.

Software services firms traditionally billed clients on time and material or the number of people deployed on projects. As customers cut costs and demand efficiency, these firms are shifting to fixed price contracts allow them to have better control on resources and also result in automation. Wipro, Infosys, Mindtree have increased revenue from fixed price contracts from customers last year, while Cognizant