Applications Outsourcing Pricing Models: Beyond The Managed Outcome Engagement

With IT investment focus shifting rapidly toward enabling front-office business results, interest in alternative pricing models for applications outsourcing engagements is on the rise. Though change is coming slowly, Forrester sees a clear trend toward volume-oriented models such as ticket- and applications-based pricing. Both customers and suppliers express strong interest in business-level outcomes from their application outsourcing engagements, but the path to business outcomes is not straightforward. Customers of applications outsourcing services should be aware that business-oriented outcomes require significant outsourcing maturity and are highly situation-dependent. Short of that, customers may nevertheless find significant value in using a combination approach using various pricing models.