Suyati Technologies
  • Services
    • Salesforce Services
      • Sales Cloud
      • Service Cloud
      • Marketing Cloud
      • Einstein
      • Experience Cloud
      • Mulesoft
      • Commerce cloud
      • Finance cloud
      • CPQ
      • Consultation
      • Implementation
      • Integration
      • Custom Development
      • Salesforce DevOps
      • Support & Maintenance
      • App Development
      • Managed Services
    • IT Services
      • Content Management Services
      • Analytics
      • RPA
      • Front end Technologies
      • Microsoft Applications
      • Cloud
      • DevOps
      • Snowflake
  • Approach
    • Development Methodology
    • Engagement Model
    • Consulting
  • Intel
    • Blog
    • eBooks
    • Webinars
    • Case Studies
  • About Us
    • Management Team
    • Advisory Board
    • Our Story
    • Testimonials
  • Careers
  • Contact Us
Suyati Technologies
  • Services
    • Salesforce Services
      • Sales Cloud
      • Service Cloud
      • Marketing Cloud
      • Einstein
      • Experience Cloud
      • Mulesoft
      • Commerce cloud
      • Finance cloud
      • CPQ
      • Consultation
      • Implementation
      • Integration
      • Custom Development
      • Salesforce DevOps
      • Support & Maintenance
      • App Development
      • Managed Services
    • IT Services
      • Content Management Services
      • Analytics
      • RPA
      • Front end Technologies
      • Microsoft Applications
      • Cloud
      • DevOps
      • Snowflake
  • Approach
    • Development Methodology
    • Engagement Model
    • Consulting
  • Intel
    • Blog
    • eBooks
    • Webinars
    • Case Studies
  • About Us
    • Management Team
    • Advisory Board
    • Our Story
    • Testimonials
  • Careers
  • Contact Us
Suyati Technologies > Blog > Non-traditional pricing models for traditional IT engagement models

Non-traditional pricing models for traditional IT engagement models

by mkrishna April 25, 2012
by mkrishna April 25, 2012 0 comment

Traditional IT outsourcing pricing models is based on vendors providing a service and being paid for it – at a fixed price, cost plus model, or on time and materials basis. But as today’s global customers expect more value from their vendors, IT service vendors are innovating different ways to provide value and get paid for it. Some of these newer pricing models include:
• Gain-sharing agreements – apt for customers wanting drastic improvements in business and true alliances with their IT vendors
Here the pricing is based on the value (and the profits) that the vendor contributes beyond distinct IT related responsibilities. Cost focused customers may ignore this model. Ross Tisnovsky, Vice President of Everest Group outsourcing consultancy, says that this model will encourage creative problem solving and collaboration as there is common business goals for both the parties.
• Shared risk-reward arrangements – a joint venture for product/service development
Both the client and the vendor share the rewards for a predetermined time/period. According to Gartner, both the parties should be willing to share responsibility for the ups and downs in the business.
• Incentive-based contracts – bonuses for a task well done
If the performance levels of the enterprise rise above the service level agreements in the Contract, the vendors are paid bonus amounts. Pace Harmon’s Martin says that “the key is to ensure that the delivered outcome creates incremental business value for the customer”. These are best suited for those customers who can identify the vendor’s investments and help them deliver at their highest performance levels.
• Demand-based pricing – pay for the resources and the productivity you get
With this model, the costs are distributed on grounds of actual usage (e.g. the amount of disk space used, hours worked etc.).
As an IT technology company, we firmly believe in the value of outsourcing. But we also know that businesses need flexibility, lower risk, and more options when outsourcing their IT work. Suyati offers traditional as well as customized, unique models of engagement that ensures every business does extend their IT profitably when they choose us as their IT outsourcing partner.
Reference: http://www.cio.com/article/704153/4_New_IT_Outsourcing_Pricing_Models_Gain_Popularity?page=3&taxonomyId=3195

0 comment
0
FacebookTwitterLinkedinTumblr
previous post
Experts Speak: Windows 8 – Plan your upgrade keeping your business needs in mind
next post
Staying on top in today’s cloud environment

You may also like

What you need to know before kick-starting cloud...

January 13, 2022

An Eye-opener into the Future Trends in Salesforce...

January 13, 2022

Seven Key IT Outsourcing Trends to Expect in...

January 13, 2022

How to Select the Right Partner for a...

January 13, 2022

On Premises vs Cloud CRM: Which is Better?

September 28, 2021

Choosing between Cloud and On-Premise Servers for your...

September 28, 2021

Broken Customer Experience? What’s the Fix?

August 19, 2020

Are Remote Proctored Exams a New Reality?

August 18, 2020

10 Exciting Features in Salesforce’s new Summer ’20...

August 17, 2020

Importance of Data Analytics in Developing Smart Cities

August 11, 2020

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Keep in touch

Twitter Linkedin Facebook Pinterest

Recent Posts

  • What you need to know before kick-starting cloud implementation

    January 13, 2022
  • An Eye-opener into the Future Trends in Salesforce Commerce Cloud

    January 13, 2022
  • Seven Key IT Outsourcing Trends to Expect in 2022

    January 13, 2022

Categories

  • Twitter
  • Linkedin
  • Facebook
  • Instagram
  • Services
    • Salesforce Services
      • Sales Cloud
      • Service Cloud
      • Marketing Cloud
      • Einstein
      • Experience Cloud
      • Mulesoft
      • Commerce cloud
      • Finance cloud
      • CPQ
      • Consultation
      • Implementation
      • Integration
      • Custom Development
      • Salesforce DevOps
      • Support & Maintenance
      • App Development
      • Managed Services
    • IT Services
      • Content Management Services
      • Analytics
      • RPA
      • Front end Technologies
      • Microsoft Applications
      • Cloud
      • DevOps
      • Snowflake
  • Approach
    • Development Methodology
    • Engagement Model
    • Consulting
  • Intel
    • Blog
    • eBooks
    • Webinars
    • Case Studies
  • About Us
    • Management Team
    • Advisory Board
    • Our Story
    • Testimonials
  • Careers
  • Contact Us

© 2021 Suyati Technologies


Back To Top
Suyati Technologies

Popular Posts

  • 1

    What are the Top 3 risks for implementing a CX Program?

    August 30, 2019
  • 2

    Do you need a separate CX Team at your company?

    September 2, 2019
  • 3

    How to build Employee Advocacy for your Business?

    September 3, 2019
  • 4

    What is Salesforce CRM and What Does it Do?

    February 19, 2014
  • 5

    Tips to Reduce Salesforce Pricing

    February 17, 2015
© 2021 Suyati Technologies

Read alsox

A Small Business Guide to eCommerce Shipping

December 2, 2015

Digital Transformation in Manufacturing: How Predictive Maintenance Could Be a...

February 19, 2018

Lotta fun! Little work! Photoblog of Paul, Matt & Frank...

September 18, 2014

By continuing to use this website you agree with our use of cookies. Read More Agree