Scalable and Cost-efficient Delivery Model

Parinati’s primary business model is to have our delivery centres in Middle India (Tier 2 / 3 Indian cities) to reduce the operational as well as HR costs. Today Middle India has good infrastructure available in terms of physical as well as communications connectivity.

Currently almost 65% of the IT Services associates working in the Tier 1 cities such as Mumbai, Pune, Bangalore and Chennai have migrated from Middle India. So the source talent pool of Parinati is same as that of the large Indian IT companies.

The current operating model of the large Indian IT Services companies is to create huge capacities to achieve scale of economy which has created significant cost escalations due to the skewed demand-supply ratios. We believe that this model is not suitable for price sensitive markets such as India. At the same time, India and the emerging markets is a huge potential market for IT in the next decade.

In terms of scalability, Parinati believes that the clustered delivery capacity model (have delivery centres of 5000-10000 associates in 5 Middle India cities rather than 50000 associates in 1 large city) is optimal and sustainable in terms of operating costs.

Also, with the creation of wealth in Middle India (pls note that 1 IT job creates 3 jobs in the support functions such as hospitality, infra support and education), the Parinati model will help in creating newer markets for industries across multiple sectors such as banking, retail, infrastructure, auto, healthcare and education.

Parinati’s model also addresses the social issues arising due to rampant urbanisation, by creating jobs at the grass roots.