Non-linear initiatives – an imperative for offshore services providers
At Prayag, we had recently completed a report on non-linear models prevalent in the IT services industry. As you know, non-linear models involved any form of revenue contribution that is not linked to headcount. Typically, in the offshore (read Indian) market, revenue growth implied proportional headcount growth as well. This is not a sustainable model for the usual reasons – talent shortage, attrition, training costs, infrastructure costs and so on.

Indian IT industry at yet another inflexion point?
How successful will companies be in de-linking a substantial part of their revenues from head count, which is when this initiative will compensate for other margin suppressing trends.Furthermore, non linear initiatives come with their own set of challenges – one has to think through associated risks.