Forget low cost! Pay more, Infosys tells US clients

Infosys will charge new customers between 3 and 4 percent more and will seek to negotiate a 2 percent increase in rates on existing contracts.

rising attrition, employees moving overseas and taking up foreign job offers has proved a major deterrent. The only way to get out of the ‘falling earning’ trap is now to increase the price globally for the software exports.


An expensive contract to the foreign clients means that the ‘low cost advantage’ that the Indian IT firms had so long been associated with will cease to exist.


India is no longer going to be ‘low cost destination’. It also implies increased pressure to raise standards and improve quality to match higher prices and global competition.


Read the whole thing here