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IT firms with higher fixed-price contracts may see lower impact on top line

HCL Tech, Wipro have more than 60% of revenue coming from such contracts, while Infosys has more than 50% share

IT SECTOR, technology, information, jobs, employment, unemployment, companies, workplace, workers, workforce, women, employees, office
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Debasis Mohapatra Bengaluru
Indian IT services firms with a higher percentage of fixed-price contracts are likely to see less contraction in revenue, over the next few quarters.
 
Analysts say the impact of furloughs and project ramp-downs will not have much of an adverse impact on IT firms with higher fixed-price contracts, as against those drawing more revenue from time and material (T&M) contracts.
 
Clients have increasingly started asking IT companies for deep price discounts in the backdrop of an industry-wide slowdown. An analysis of the top four IT services firms showed that HCL Technologies (HCL) drew 68 per cent of its revenue from

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First Published: May 01 2020 | 8:20 PM IST

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