Business process management (BPM) firms say they are increasingly moving towards outcome-based deals, or tying sourcing strategy to business results, in keeping with clients’ requirements and changing efficiencies brought on by automation and adoption of digital.
Peter Bendor-Samuel, CEO of research firm Everest Group, said the progress claims made in outcome-based pricing by BPM firms are often exaggerated, as the contracts are difficult to negotiate and often leave one of the parties feeling like they have been taken advantage of.
“Having said that, pricing has evolved with most clients preferring to move to some form of usage or “as a service” model, where the client pays a fee on the usage it makes of the service. This can take the form of number of seats, or number of transactions or some other usage measure. Clearly the old FTE model is giving way to this more “as a service construct with clients eager to drive adoption,” he added.
Read more in Business Standard
