- Published on August 22, 2025
- In IT Services
Indian IT Caught Between Hours and Outcomes
India’s IT sector is loudly championing “outcome-based” AI pricing, but contracts still cling to old models. Clients want results, vendors promise value, and, yet, deals remain stuck in tradition.
- By C P Balasubramanyam
In the bustling corridors of India’s IT sector, “outcome-based” has become the new mantra. Spurred by the AI revolution, industry leaders are declaring a break from legacy billing models. Clients, they argue, are no longer interested in paying for hours worked or personnel deployed; they want to pay for tangible results.
Yet, the shift appears to be more aspirational than actual. While the language on earnings calls and in sales pitches has evolved, the fine print in most contracts reveals a different story. The majority of AI deals continue to follow the very models they’re meant to replace, compelling clients to ask the uncomfortable but inevitable question: "What's the outcome?"
The Reality Check: Old Wine in a New AI Bottle
Despite the hype, Indian IT services have yet
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C P Balasubramanyam
Bala is a journalist covering Indian tech companies and startups from Bengaluru.
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