Incentive-based Pricing Models for Your Next IT Outsourcing Contract

Partner Steve Martin serves as the sole resource in this article about considering incentive-based IT outsourcing pricing models. Sample excerpts: "'IT outsourcing providers and their customers pay plenty of lip service to the win-win relationship. An outsourcing contract in which provider and customer each feel they've come out ahead remains a scarce commodity, however…That's because, for all the talk about mutual gain, structuring an IT outsourcing contract that drives benefits beyond the stated services is extremely difficult,' according to Steve Martin, partner at Pace Harmon LLC, an outsourcing advisory services firm based in Tysons Corner, Va… ‘These contracts are complicated, thorny and take a long time to negotiate. Despite not being new, incentive-based pricing lacks a clear and consistent definition,’ Martin said. ‘We see terms tending to favor one or the other party, but not both.’"