Solutions

Price Benchmarking

Everest Group’s Price Benchmarking services help align your company’s ITO and BPO pricing with global market standards. We offer two different approaches to benchmarking: input-based and output-based.

Input-based benchmarking

This approach provides you with the comparative pricing data by resource skill and an understanding of the pricing drivers in your deal environment.

Everest Group conducts feasibility studies prior to the engagement to ensure the availability of data and defines the best approach to analyzing the equivalent market price. Our input-based benchmarking report will provide you with 20th and 80th percentile of the market range, along with the median value to help you assess relative positioning of your current rates.

Output-based benchmarking

Output-based benchmarking provides you with the comparative pricing data by resource unit for each ITO tower or BPO process and an understanding of the pricing drivers in your deal environment.

In our analysis, we focus on primary drivers of output-based pricing. This type of benchmarking is conducted at the resource unit level for each technology (e.g., price per server) or business process (e.g., price per invoice).

Our approach

Everest Group Price Benchmarking teams deploy several proprietary methodologies, including:

  • Direct benchmarking using Everest Group’s pricing database. We find the best match between the skill or resource unit in question and Everest Group’s proprietary deal database.
  • Bottom-up price triangulation. When insufficient information is available from local and multinational suppliers, we triangulate with similar rates and skills in other geographies.