BENGALURU – IT firms are always in race to acquire large deals to generate revenue and to survive in cut throat competition. In fact, Indian outsourcing giants such as Infosys and Wipro are in competition to grab large deals to make large payment; source Businessinsider.in.
“There are different kinds of deal structuring that takes place – if there is an asset that gets transferred by the customer and then we may make an upfront payment for that. It’s not just quantity of revenue, but it’s about quality of revenues,” Wipro CEO Abidali Neemuchwala had said earlier.
The companies were not involved in the bidding process as they were witnessing slow revenue growth rate but the scene seems to be changing now-a-days. Interestingly, IT giants such as IBM, HP, and Accenture were seemed to be indulged into the bidding process for years. Later on, other Indian IT companies such as Wipro and HCL Technologies stepped into the process and derived benefit from the bidding process. Surprisingly, the Indian companies stepped into the process later, they still enjoyed great deals. The well known Indian IT giant, Infosys, won such 10 highly paid bids and the bids were worth over $50 mn. By acquiring such huge deals, Infosys was well known to be at the forefront among the rivals in the past few quarters.
“Infosys does not make such investments with every large deal, there are some deals that require such payments, and they can be rightly considered. Only when it comes to the quality of the work we’re getting, and the nature of the work we’re getting,” said Vishal Sikka, CEO, Infosys.
