Pricing Research

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Ensure that you have the right price in your contracts by using our pricing intelligence

Pricing Research and Pricing Metrics

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.

What Commercial Levers Will Service Providers Need to Keep in Check in 2024?

Pricing Research: The Evolution of Pricing Teams

Deal pricing teams have undergone a transformation, moving beyond traditional cost-plus roles to become strategic allies in commercial strategy and negotiations. Modern pricing teams now excel in offering market insights, pioneering pricing strategies, and developing innovative contractual models that significantly boost deal profitability and overall success.

Explore the evolving landscape of deal teams, examining their diverse structures across different service providers, and gain valuable insights into pricing research and support team dynamics in our featured blog.

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The Pricing Bulletin: IT Services Pricing Overview in February 2024

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What Commercial Levers Will Service Providers Need to Keep in Check in 2024?

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The Pricing Bulletin: BPO Pricing Model Trends: Adapting to Commercial Shifts

Our Pricing Research and Contracting Offerings

Pricing Analytics as a Service

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 research and contracting experts who are available to support you throughout the year.

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Software license and cloud platform diagnostics

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.

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Strategic engagement review

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.

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Price benchmarking catalog

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.

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Solution sizing insights

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.

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Custom price and performance benchmarking

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.

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Service provider pursuit support

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.

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Pricing Research: Coverage Across Pricing Models

Input-based Pricing

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.

Output-based Pricing

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.

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Outcome-based Pricing

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.

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"Everest Group's insights enabled us to minimize costs and negotiate confidently with our strategic suppliers."
- Telecommuncations Company
"We needed to partner with someone that would be readily accepted within our organization. With Everest Group's reputation from prior engagements, you were the best choice."
- Information Services Company

Our latest thinking

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Distinguishing IT Metrics from Outcome Metrics in Application Management Services

Our Pricing Research Experts

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