Trends In Indian IT Services Pricing

April 5th, 2007

Stephanie Moore

With contributors:

Christine Ferrusi Ross , Allison Thresher

Summary

As companies begin to renegotiate contracts with their Indian or global IT services providers, it is important to understand the pricing trends in the dynamic Indian IT services market. There has been a lot of press about the rising labor rates in India, and it appears that clients are having a hard time cutting through the hype. Pricing has risen in the last two years; however, it has not risen as much as Indian salaries have, nor has it risen as much as press reports seem to indicate. Meanwhile, the Indian providers are finding ways to insulate clients from the increasing wages — but there are also ways to structure relationships so that the client receives better value even with increased labor rates.

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