Mphasis says clients more 'amenable' to outcome pricing amid AI-led deals - Business Standard

2026-07-26 · Source: artifical intelligence via Google News · Field: Business & Management — Corporate Strategy & Leadership, Consulting & Professional Services, Artificial Intelligence & Machine Learning · Depth: Fundamental Awareness, short

Summary

Mphasis reports clients are increasingly amenable to outcome-based contracts, moving beyond traditional time and material models, as artificial intelligence (AI)-led deals proliferate. Nitin Rakesh, CEO and MD, noted that business stakeholders, not just IT sourcing, are driving these discussions. While outcome pricing currently represents a small revenue share, the company launched its Mphasis Tria platform in May, which will operate entirely on this model, with FY27 as its foundational rollout year. As of June 30, time and material contracts constituted 46.5 percent of projects, fixed price 44.3 percent, and transaction-based 9.2 percent. Mphasis's total contract value (TCV) wins for the preceding quarter reached \$461 million, with 63 percent being AI-led, focusing on concrete improvements like reducing cyber incidents or ticket volumes. The company's April-June quarter saw net profit rise 10.8 percent to ₹489.5 crore and revenue grow 17.5 percent to ₹4,384.1 crore.

Key takeaway

For IT services executives evaluating AI transformation projects, recognize that AI-led deals are fundamentally shifting client expectations towards outcome-based pricing. Your firm should prioritize developing commercial models that tie directly to measurable business outcomes, such as reducing cyber incidents or ticket volumes, rather than solely focusing on traditional time and material or fixed-price contracts. Adapt your pricing strategies now to align with this evolving client demand and secure future AI-driven contracts.

Key insights

AI-led deals are making clients more receptive to outcome-based pricing models.

Principles

• Outcome pricing shifts focus from input/output capacity to measurable results.
• AI-led transformations drive client interest in value-based commercial models.
• Business stakeholders, not just IT sourcing, are driving outcome-based deal discussions.

Method

Mphasis Tria platform operates entirely on outcome-based pricing, rolling out in FY27 for annual recurring revenue from FY28.

In practice

• Measure outcomes like reducing cyber incidents by 50% or ticket volumes by 50%.
• Develop commercial constructs tied to measurable business outcomes.

Topics

• Mphasis
• Outcome-based Pricing
• AI-led Deals
• IT Services
• Mphasis Tria
• Contract Types
• Financial Performance

Best for: Entrepreneur, Director of AI/ML, Consultant, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by artifical intelligence via Google News.