Barter System to be revisited in IT

Coins and banknotes, two of the most common ph...
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The Wikipedia entry for Barter system says about it as:

Bartering is a medium in which goods or services are directly exchanged for other goods and/or services without a medium of exchange, such as money

This used to be the system in yester-years very widely but not so much in the recent years. It is quite possible that this system will make a comeback in the Information Technology arena.

Very soon, we will see a system where IT services (software, hardware, services, BPO) could be given by a System Integrator (+ Software Vendor) to a customer in exchange for services that the customer can offer.

For example, an IT services organization can modernize the IT systems for an engineering firm, who can construct a couple of offices for the IT firm in exchange. This way, it is a win-win situation for both the firms concerned.

Similarly, a firm that builds products specializing in employee recognition programs can get their software built by an organization that needs such a program to boost the employee morale. In addition, license contracts (+ Maintenance charges) can be waived off in exchange.

An organization like CISCO, for example, can get software built by services firms in exchange for networking products that CISCO is famous for. In the same way, a firm can build portals for a mobile giant and get handsets for their employees as a fee.

The advantage this model will bring is to get invaluable user-input from the initial users of the products. Using these inputs, the products can then be refined further. Such an agreement makes the business model much more involved – both firms will be very much interested to make this endeavor a success.

This could be very well the business model that might come into existence very soon. Do share your inputs on why you think this model may not work? What are the hindrances.

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One Response to “Barter System to be revisited in IT”

  1. SS Says:

    Very limited applicability. This will only work when the 2 companies have products/services they want from each other — and they are of similar value (real or as perceived by the co.). The reason why the monetary system gained over the barter one is that it provides a common base for valuations which can be reused to buy *anything* – not just what is offered by the other party. So yeah – possible – but very rarely usable.

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