India's US$315 billion IT services market shifts to outcome-based contracts

Major Indian outsourcing companies are moving from the billable-hour model toward outcome-based fees, according to a report published August 20, 2026. TCS said about 80 per cent of its contracts in selected business-services divisions are now outcome-based.

Why it matters: AI is changing the contractual structure of the business even before entire service categories disappear, and value and risk are being re-shared between customer and provider.

Measurable outcomes, baselines, data responsibility, change control and risk sharing all need to be explicit in such contracts. The reported percentages are not an audited industry-wide measure.