New Delhi, May 14 -- India's largest information technology (IT) services companies including Infosys Ltd and Cognizant Technology Solutions Corp are getting more work contracts based on fixed prices and outcomes as the use of AI-driven automation tools increases.

This marks a shift from the traditional 'time and material' (T&M) billing model where IT services companies bill clients for the number of hours spent on work like coding, software development and maintenance. The change in pricing contracts follows the rise of automation tools that allow fewer people to handle IT projects.

With fixed pricing, IT services companies and their clients determine prices for the work done regardless of the time spent or the outcome achieved. Outcom...