AI is pushing Indian IT firms toward outcome-based pricing
Summary
Indian IT firms are starting to see more contracts that tie pay to business results rather than hours worked or project scope. The shift is being driven by AI, which is changing how work is delivered and how clients judge value.
Business Impact
The change is still limited, but it points to a real pricing reset in parts of IT services. Outcome-based deals suit shorter, AI-led engagements where clients want measurable gains, while large deals still largely rely on older subscription, consumption or time-based terms.
Key Uncertainty
TCS says it is seeing more outcome-based commitment in some engagements, while Infosys says client interest has not yet translated into a large share of its work.
HfS Research’s Saurabh Gupta says many deals are becoming hybrid, combining subscription, consumption and performance-linked pricing rather than moving fully to one model.