Best Practice Report

The Right Pricing Model For Your Systems Integration And IT Consulting Projects

Introducing A Tool To Help Simplify The Selection Process

February 10th, 2010
TS
Tim Sheedy
With contributors:
Christine Ferrusi Ross , Elizabeth Rose

Summary

Sourcing executives trying to strengthen their relationships with business and IT users can do so by helping the users understand not just scope but the financial implications of their choices. One key way to do this is to help users understand the different pricing options for consulting and systems integration projects. There are four main pricing models used by IT consultants and systems integrators: time-and-expense, fixed-price, risk/reward, and results-based (or value-based). Forrester has developed a tool that can help you select the appropriate pricing model for your specific project, helping you increase the effectiveness of your negotiations, the success of your engagement, and the partnership between sourcing and internal users.

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