Adaptive Pricing Comes Into Focus

If there’s anything harder than deciding what to outsource, it’s negotiating a fair price.

In the past, fixed-price or cost-plus pricing models were an adequate, if imprecise, way to compensate outsourcers. But today’s competitive marketplace offers CIOs new alternatives that add flexibility and agility to these relationships. Indexed pricing, gain sharing, and capacity or utility pricing promise a stronger correlation between business results and IT-resource consumption. … [ Read more ]