IT scrambles for benchmarks as clients eye outcome-based deals

As artificial intelligence (AI) disrupts the traditional service delivery at India’s largest IT firms, clients are experimenting with new billing strategies as hourly worker rates and headcount swaps are becoming obsolete. However, the lack of new benchmarks means the shift from time-and-material (TNM) pricing model to outcome-based is still evolving, according to analysts.

“Outcome-based pricing in IT deals is a promising approach but presents challenges in benchmarking outcomes, especially for long-term projects, as success metrics can be ambiguous…