PricePoint™: Q4 2015 Points to Consider in the Pricing of Outsourcing Services

Scope

PricePoint Q4 2015 includes the following:

• Assessment of pricing drivers in ITO and BPO including:
• Buy-side dynamics
• Supply-side dynamics
• Key macroeconomic factors
• Overall impact of the drivers on pricing in Q4 2015
• Pricing outlook for Q1 2016
• Featured research
• Market-based service-level methodology analysis

Contents

This report contains in-depth analysis of the drivers that impact the pricing of ITO and BPO services in India and United States. The drivers included in the analysis are:

• Buy-side drivers including deal size, deal volume, value mix, and new deal-renewal mix
• Supply-side drivers including resource utilization, support costs, and service provider financial performance
• Macroeconomic factors including operating cost inflation and foreign exchange rates

The report also contains the aggregated impact of these drivers on pricing in Q4 2015 and the outlook for Q1 2016.

The featured research assesses the following key aspects of an SLA in case of non-conformity to the set service levels and includes the following sections:

• Initial benchmarking/grace period
• Dual performance targets and their implications
• Service credit regime (fee-at-risk and severity weights)
• Multipliers for multiple misses
• Earn-back clauses and their typical mechanism
• Termination for cause and law of small numbers’ exemption

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