Banking software provider Nucleus Software Exports Ltd, in a move to meet the twin needs of curtailing costs and generating steady revenues from clients, will offer its applications on a hosted mode.
Currently, the company's revenues come through a model wherein the applications are owned and hosted by the user firms. In the hosted model, a firm uses the software on a pay-per-use basis and doesn't own it.
Vishnu Dusad, chief executive officer & managing director, Nucleus Software, said, "The spending scenario is clearly gloomy. Clients want to play safe. Generally, they want to negotiate after about 6 months." In financial year 2008-09, 10 of the company's clients put IT spending on hold. "We are thus looking to focus on the operational expenditure of firms. This ensures continuous revenue for us and clients save around 80% of their capital expenditure. We will start the hosted model of usage with our lending applications first," said Dusad.
For existing clients, Nucleus Software will change the model through which the application maintenance charges are billed. Instead of an annual payment, the clients will be able to pay in chunks through the year, said Dusad.
Source: DNA
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