The intense competition today has increased the demand for innovation from both large and small companies alike. Organizations currently find it extremely difficult to meet this demand through their existing ecosystems. With the outsourcing industry attaining maturity and the extensive change in business dynamics, these organizations are looking for strategic partners who can not only provide sustained financial and operational benefits, but also bring in a culture of innovation.
Therefore, the need of the hour is that service providers start thinking differently and moving away from traditional, effort-led growth models to focusing on outcome-based pricing models instead, which are not linear to employee headcount as a condition for growth.
This whitepaper shares a high-level framework enabling the movement from FTE pricing to value based pricing model. In this service provider is responsible for bringing operational efficiencies and managing key end-to-end operational KPI, such as:
- FTE productivity
- Cycle time
- Service level
In this whitepaper, we illustrate some of the alternate pricing models that could help a company reduce its dependence on high cost T&M pricing models by replacing them with SLA-based models for managed services, with outcome or subscriber-based pricing (value based pricing). Download the whitepaper.