Most outsourcing clients are confident that pricing for infrastructure services is competitive for year one and year two of an agreement. Historically, however, pricing adjustments over the life of a contract don't keep pace with the competitiveness of the market. So more organizations are considering techniques to ensure competitive pricing over the life of their agreements, says Bob Mathers, principal consultant, Compass Management Consulting. Such techniques include predefined unit price declines, mandated benchmarks on a regular basis to check pricing, and price adjustments based on specific price indexes.
The tough economy has affected the outsourcing industry, along with every other industry out there.
When Ann All wrote about outsourcing trends, citing information from IT services company CSC, she found the trends largely involved buyers deriving more value for their money. Instead of the traditional tactic of trying to negotiate the lowest possible prices, however, buyers are relying on more sophisticated techniques such as outcome-based pricing.
Ann spoke to several other sources, including Unisys, TPI, Everest Group and Compass Management Consulting, to get their takes on top outsourcing trends for the next year. They offered additional insights on the increased value theme, including buyers asking their suppliers for help in targeting internal inefficiencies and developing ideas for improvement.