Contracts to outsourcing: How Covid-19 may disrupt India's IT sector

Cornavirus pandemic likely to push the sector to bring in changes to operating and delivery models.

Information technology, IT, Tech, Data, cloud, internet

India's IT companies prepare to change business model for coronavirus pandemic.

Debasis Mohapatra Bengaluru
The Covid-19 pandemic may well become a ‘black swan’ moment for the IT outsourcing services industry, ringing in fundamental changes ranging from the delivery model and contract specifications to the accelerated adoption of specific technologies.
The crisis is prompting stakeholders to tweak their established practices in multiple ways. According to industry watchers, while the existing delivery model is likely to have a higher remote working component in future, clients are also expected to renegotiate on deal pricing, asking for more ‘outcome-based’ pricing models than fixed price models.
“The major change will be in the nature of outsourcing deals which will shift more rapidly towards digital (services),” said Hansa Iyengar, principal analyst for Digital Enterprise Services at global consultancy firm Omdia.

First Published: Jun 13 2020 | 5:47 PM IST

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