Trends Report

Applications Outsourcing Pricing Models: Beyond The Managed Outcome Engagement

Pricing And Packaging Models Are Shifting — Slowly

December 5th, 2013
With contributors:
Christopher Andrews , Fraser Tibbetts

Summary

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.

Want to read the full report?

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.