Why Read This
The intensity of the recent economic crisis focused attention on immediate savings exemplified by renegotiation on billing rates for application development and maintenance (ADM) services, among other service types. However, with signs of stabilization more evident and time frames for decision-making lengthening, clients are once again viewing the potentially greater benefits of managed ADM relationships with anticipation. With the majority of offshore work still priced on a time-and-materials basis, there are engagements worth many billions of dollars remaining to transition. Pricing for ADM services remain in flux, and no single client or provider has solved the puzzle completely. However, managed outcome relationships can provide substantial benefits if their significant organizational and governance hurdles are overcome.