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Datacom proposes revenue sharing model to IT vendors for outsourcing needs
TT Bureau |  |  06 Aug 2008

Datacom may be a new entrant in the mobile services sector in the country. But the company is already set to create new benchmarks and trends in the industry. An instance is the company’s recent proposal to top IT vendors in the country to work on a revenue share model for the company’s IT outsourcing needs.

 

The revenue share model is considered to be the first of its kind in the country. For a new operator like Datacom such a model suits it best since it allows it to gradually invest on its IT requirements and not shell out a huge amount generally associated with IT deals in telecom space.

 

CEO Ravi Sharma claims the IT vendors too are equally excited about the new model. Vendors including names such as IBM, TCS, Wipro, Tech Mahindra and HCL Technologies are reported to be in talks with the company. The deal is valued at about Rs 3000 crore spread over a period of 7-10 years.

 

If successful the model is most likely to be replicated by other new entrants as well.

 

Analysts say the model can be considered as a new marketing mix pertaining to price being adopted by IT vendors who are aware that new entrants may have trouble forking our large investments for their IT needs.

    
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06 Aug 2008(IST)  
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