Accenture Said To Be Opening Lower-Priced India Subsidiary - InformationWeek
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5/13/2009
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Bob Evans
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Accenture Said To Be Opening Lower-Priced India Subsidiary

Long known as a high-end provider of business and technology consulting and services, Accenture is reportedly about to open a new subsidiary in India under a separate name with rates well below the premium-level pricing Accenture has traditionally charged, according to the Economic Times of India.

Long known as a high-end provider of business and technology consulting and services, Accenture is reportedly about to open a new subsidiary in India under a separate name with rates well below the premium-level pricing Accenture has traditionally charged, according to the Economic Times of India.Saying "the move underlines the growing reality in the IT services market, where newer contracts are coming at lower price-points thanks to the continuing slowdown," the report in the Economic Times said the new unit will bill at rates about 10% below the $27 or $28 hourly rate Accenture charges its clients.

Accenture declined to respond to requests for comment, the article said.

The reported move would mark another in a series of moves large IT vendors are making as they attempt to balance the financial realities among their core clients with their own need to sustain profit margins during the downturn. Recently, SAP and Oracle have announced some limited but unprecedented accommodations to their traditionally non-negotiable 22% maintenance fees, and most major technology companies are expanding the financing options they're willing to offer cash-strapped customers.

Those moves follow some pricing adjustments made earlier this year by the major Indian outsourcing companies, as Tata, Infosys, Wipro and HCL were all planning to lower rates by up to 20%.

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