Viewpoint

Output-Based Pricing Models in Application Outsourcing

The selection of an appropriate pricing model is always an area of concern for enterprises that seek to outsource their IT services. Over the last few years, we have seen a tremendous growth in the adoption of next-generation pricing arrangements such as output- and outcome-based pricing. More and more enterprises are leveraging these alternate models for their outsourced IT services. Application services is one such area where these models have witnessed good traction.