Is the Company Able to Raise the Price of the Product or Service According to Inflation?

Infosys signs contracts with customers to outsource software development and management projects. Once the contract is signed, it cannot raise the prices before that contract expires. When the contract is up for renewal, they can renegotiate the rates according to the inflation or employee expenditure. In India, the wages of software professionals increase yearly. If the company is not increasing the salary, it will be very difficult to retain the employees. For that purpose, whenever new contracts are signed, the company needs to increase the rate for the contract according to the employee cost. Competitors also need to do the same.

Result for this checklist item: Pass.