pricing 520In this series about Pricing Models in outsourcing the author gives a detailed overview about advantages and disadvantages of the different pricing models that are available and in use today. Learn which model might work best for your projects and how to optimize your outsourcing-contracts.


Along with the globalization of Information Technology (IT) – related work, IT outsourcing has evolved to become mainstream in many organizations, both large corporations and startups alike. Such a labor arbitrage strategy is being increasingly exploited by many organizations through partnerships, joint ventures, captive operations, etc. to establish sustainable competitive advantage. Such an approach helps decrease costs, improve delivery, and access a broader talent pool of skills, etc. towards developing price and performance effectiveness.

1343740 63564406 520Are you aware that, whey your (say Romanian) company's products are judged by a (say German) buyer, your country's reputation plays a role in the decision making process?

Yes, this is another challenging thing about international marketing: you have to be aware of your country's historical or cultural aspects and understand that, although these aspects have nothing to do with your products' quality, they exist in the mind of your foreign client.

Add to that the fact that the clients tend to form a general opinion on the quality and performance of the products originating from a given country based on their previous experiences with other products from that country.

versich studie bild 520IT-Sourcing ist ein Geschäftsfeld mit international wachsenden Umsätzen. Der Versicherungsbranche wird nachgesagt in diesem Umfeld eher konservativ und abwartend zu sein.

Wie aber sieht die Realität aus? Sind Versicherungen wirklich eher abwartend, wenn es um die Auslagerung von IT-Dienstleistungen geht und wie sind bei erfolgter Auslagerung die Erfahrungswerte?

Bei der Suche nach entsprechenden, belegten Daten findet man für den deutschsprachigen Raum lediglich Fragmente. Zwar gibt es Meldungen über Vertragsabschlüsse seitens der Anbieter und Analysen über Outsourcing Trends bei Versicherungen allgemein, nicht jedoch dedizierte Daten, die das IT-Outsourcing Verhalten von Versicherungen im Detail beschreiben.

fixed price 520A fixed price model is also called a Lump Sum model and is an ideal pricing mechanism for projects with a clear scope, established project management methodologies, and a stable set of requirements. The teams at both, the client and service provider organizations have a good grasp of project requirements, have established a conducive working environment, are aware of each other's' skills and capabilities, etc. Hence, the service provider furnish extensive amount of details on how the project will be executed before project kick-off. In this model, the requirements are so clear that periodic deliverables at agreed upon timelines (milestones) could be expected.

Managing fixed price projects required a lot more professionalism, as the project risks are borne entirely by the service provider. Hence, scope creep and scope changes are difficult to undertake without incurring extra costs or reduced profits. Rigorous project monitoring and control, quality assurance (QA) and control (QC) and cost control are critical in executing fixed price projects.

36322 3149 520With the advent of outsourcing dating back to the socio-economic upgrade induced after WWII suppliers and sponsors core business problem circles around the question of how such work sharing is contracted and reimbursed. With this article I will describe the evolution of outsourcing, its first steps in contract research and the actually applied contracting approaches. Thereof, I will outline advances and pitfalls in current contracting models and place old and new contracting approaches into perspective.

We had the chance to meet with Marco Stefanini, founder and chairman of Stefanini and with Mr. Ernst Vögtle, VP Sales Management EMEA and talk about their views on the global IT service industry and the expansion to the...

where_executives_get_it_news_640Online-Medien sind weiterhin die beliebteste Informationsquelle für Führungskräfte der internationalen Technologiebranche, aber Social Media hat auch bei der Informationsbeschaffung stark aufgeholt. Zu diesem Ergebnis kommt die jährliche Technologie-Umfrage von Schwartz Public Relations zusammen mit dem weltweiten PR Netzwerk Eurocom Worldwide. An der Studie haben über 300 europäische Führungskräfte von Technologieunternehmen im Frühjahr 2012 teilgenommen.

1392372 84667733 520A guest post by Roxana Toma, from The International Marketing Blog. - Let me start this pompous post* on cross cultures worldwide by undermining my credibility: my international marketing experience is not at all THAT international.

Nevertheless, I'm interested in globalization and worldwide business cultures. Particularly, I was looking to learn about what market approach works depending on the targeted regions or countries.

Aneta-Blaszczyk Poland 520In cost-reimbursable or cost-plus models, the service provider is compensated for the expenses incurred, up to a prescribed limit and an additional balloon payment to allow for some profit. Cost-reimbursable model differs from fixed-price model in that the service provider is paid a compensated to the extent prescribed in the contract, regardless of the nature of expenses incurred. However, in a fixed price model, the service provider is forced to deliver upon commitments within the limits set in the fixed price agreement.

By Anthony Potter, Partner at Elix-IRR, UK for the "Business Process - managed and outsourced" Special Edition of the Outsourcing Journal Since the financial crisis, banks have been caught in a negative cycle of falling returns on equity, and a need...