Infosys BPO | Transaction-based pricing

Infosys BPO said it was seeing traction with transaction-based pricing model as customers look to convert their capital expenditure to operational expenditure while fighting an economic downturn. “Customers are increasingly looking at adopting the transaction model as cost-cutting becomes imperative,” said Gautam Thakkar, Vice-President and head of F&A, Infosys BPO.

The finance & accounting (F&A) practice of Infosys BPO, which employs about 5,000 people including MBAs and chartered accountants, contributes to about 48 per cent of the company’s earnings from back-office services. For the December quarter, Infosys BPO reported revenue of $67 million and a net income of $10.8 million. About 18 per cent of Infosys BPO’s earnings are derived from services offered under a transaction-based pricing model and the company expects to see an increase going forward, Thakkar said. Infosys BPO’s clientele in F&A includes global customers in banking, manufacturing, telecom, publishing, media and entertainment, automotive services and distribution sectors.

Major boost

Infosys BPO’s F&A practice got a major boost in 2007 after it acquired Philips BPO’s captive operations for $28 million and got a $250-million, seven-year deal. Further, Infosys BPO has started offering higher value services such as financial planning, analysis, financial reporting and budgeting that currently accounts for seven to eight per cent of the BPO earnings, Thakkar said.

Earlier, the company was offering F&A services such as accounts receivable and accounts payable. Thakur said the company would continue with its platforms strategy and is investing in developing different platforms. Infosys BPO had launched its procure-to-pay platform in August when it restructured its procurement business. Research firm Gartner recently awarded a positive rating for Infosys BPO’s F&A practice for its vendor capabilities. Gartner’s Marketscope for Comprehensive Finance and Accounting Business Process. Outsourcing-2008 evaluated 11 vendors, including Infosys BPO, for the report.