Tuesday, June 25, 2013

Outcome based pricing model

One of reasons why IT services is thriving because of the disruptive changes being introduced in the market. The latest on the block is the "outcome based pricing" delivery model. While the concept is not new, it is slowly gaining traction with the customers who are willing to take the risk of testing the delivery model. Following article in economic times provides a good overview about the model link.

I am sure the model will be very popular as we move forward. This is also set to rapidly disrupt the people supply chain planning for the large IT vendors as the traditional delivery models are based off the time & materials and fixed price model which factor in significant resources through out the engagement.

Please share your ideas and comments..

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