The economic downturn is forcing companies to look at converting their capital expenditure to operational expenditure thereby increasing the demand for transaction-based pricing model says Infosys BPO VP and head F&A, Gautam Thakkar. “Customers are increasingly looking at adopting the transaction model as cost-cutting becomes imperative,” Thakkar was quoted in the Hindu Business Line.

Almost 18% of Infosys BPO’s earnings are derived from services offered under a transaction-based pricing model which is likely to increase.

The finance & accounting (F&A) practice of Infosys BPO, employs 5,000 people and contributes to about 48% of the company’s earnings. The F&A practice got a major boost in 2007 after it acquired Philips BPO’s captive operations for $28 million and got a $250-million, seven-year deal.

Also the company has added high value services including financial planning, analysis, financial reporting and budgeting to its portfolio of services and this currently contributes about 8% of the BPO earnings.

For the December quarter, Infosys BPO reported revenue of $67 million and a net income of $10.8 million.