Please Wait a Moment
15 August 2010 · Article

Next Generation Pricing

The outsourcing industry has travelled a bumpy road in terms of pricing models since its birth in the late 1980s / early 1990s. Initially pricing was input-based: prices were set in terms of the amount of resource used. The resistance to accepting a move from the ‘old’ regime was down to suppliers being concerned about the risk transfer inherent in a service output-based model. In time though, suppliers have warmed to the new regime: it gives them control over the service inputs and, therefore, whilst suppliers bear the resource volume risk, they equally enjoy the rewards of delivering the service outputs in a more efficient manner. So what next?


IAN DEEKS, Ten Squared Limited

This resource is only available to our paid members. You can Join Us or Sign in to get access to this resource.