As the leader in pricing research and pricing metrics, we give you a deeper level of expertise and data, ensuring that the price you pay matches the value you need without overpaying, or under-scoping.
Clients using Everest Group’s pricing services have saved an average of US$4.1 million in their contract negotiations. This represents an RoI of 30x to 80x.
From price benchmarks and strategic reviews of your engagement to the impacts of next-generation delivery models on pricing and proposal and contract insights, we can help you with all your pricing challenges.
Our pricing research offerings include pricing analytics as a service, custom price and performance benchmarking, price benchmarking catalogs, strategic engagement review, service provider pursuit support, and more.
As outsourcing activity picks up after slowing during the pandemic, now is an excellent time to gain a better understanding of pricing and how providers price IT and BPO services. To help ensure your company gets the right value out of your current or next outsourcing deal, read on for pricing research and outsourcing costs expertise based on Everest Group’s insights.
Seven common trends that can impact outsourcing costs:
Enterprises need to understand the right amount they should pay for outsourced services, as both under and over-paying can lead to value dilution. Pricing Analytics as a Service is an annual membership providing access to custom price benchmarks, performance metrics, and ongoing access to our pricing and contracting experts who are available to support you throughout the year.
Enterprises typically spend 0.5-2% of their revenue on software products and cloud platforms. Improving their contracts and pricing on these categories can yield significant savings on their overall budget. We support enterprises with due diligence, license model assessment, contract optimization and price benchmarking across a wide range of software and cloud platforms.
Strategic engagement review (SER) is a proprietary framework created by Everest Group as a result of reviewing and benchmarking hundreds of outsourcing contracts over the years. An SER usually covers an extensive review of the deal solution, commercials, performance metrics, contract terms and conditions, transformation roadmap, and other key tenets helping enterprises determine the future roadmap for their strategic outsourcing relationships.
The catalog is an off-the-shelf roster of the most common contemporary roles and resource unit price benchmarks It covers benchmarks for all major IT and BPO functions across key onshore, nearshore, and offshore locations. The benchmark catalog is refreshed bi-annually and coupled with on-call expert time to respond to queries or offer guidance.
Solution misalignment has been cited as one of the key reasons for service provider eviction during RFXs or a major cause of client friction in sole sourced scenarios. We support pursuit or delivery teams on understanding detailed effort estimates and delivery guidelines to do appropriate right-sizing across different type of engagements. This enables service providers to structure appropriate solutions at competitive fees.
We assist clients in custom price and performance benchmarking for services across multiple pricing models, operational metrics, and contract terms. And we do this across IT infrastructure, applications development & maintenance, contact center, transactional processes, judgment-based processes, specialized skills and professional services.
Pricing intelligence is critical to sustainably winning and retaining business for service providers. We support pursuit teams on a live bid in order to engineer a competitive fee per the specific scope and baselines of a deal. This enables service providers to clearly articulate their value and create a win-win relationship with their clients.
The fee is linked to the time or effort delivered by the resource. It is a simple and easy to implement this model, and ideal for situations where delivery risks cannot be quantified, or scope of services is relatively unclear. Example: Rate per hour for a developer resource.
Our coverage includes all key IT, BPO, and Professional services roles for delivery locations across the globe.
Fee is inked to the output of a certain service or process. It provides assurance around paying for deliverables, not time. There is though a high contingency on volumes, scale, and complexity; therefore, is relatively difficult to implement and track. Example: Price per invoice processed.
Our deep normalization approach ensures a like for like comparison incorporating service, skills, and contract-related factors.
Fee is linked to an actual business outcome. It is high risk, hard to implement, but there is immense business impact if done right. Applicable only where business impact metrics can be directly linked and quantified. Example: Fee for strategic outsourcing and category management which is linked to the committed savings achieved.
Our approach for pricing insights for this model includes contextualization to the environment and use of truly relevant comparison sets.