Despite decades of outsourcing experience, pricing models remain largely stuck in the past, using outdated approaches that offer little to no incentive for sourcing teams to change or for service providers to propose new options. As we march inexorably down the path toward an as-a-service economy, the outdated input-based model is increasingly less effective. An output-based services consumption model is better suited to enterprises’ overall IT programs as they increasingly become cloud-based.
Output-based Pricing in Application Services
