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Pricing
Ravi Kalakota, who writes, consults and trains through E-Business Strategies, shares eight lessons about outsourcing -- including two hidden (yet obvious) expenses you may not think about when budgeting your project. Benchmarking IT Services This is the only free report we’re aware of that actually provides some pricing information (with many caveats regarding variations) for common IT activities provided by service providers. Comparing Costs between Internal and Outsourced Services The biggest problem in responding to an outsourcing challenge is that it's difficult to compare an internal service provider's budget to a service provider’s outsourcing proposal. In this article we examine other issues that cloud the comparison. Costing IT Services -- An Introduction to Services Based Costing If you find yourself in the position of justifying the services you provide -- either internally or externally -- you may turn to some form of service-based accounting to quantify the components -- people, equipment and services -- that make up your offerings. Do the Math This tool allows you to enter best case and worst case calculations for various management aspects of an offshore outsourcing contract to figure out the total cost of the endeavor. Don't Sign That Contract! Getting the Best Price from Your Service Provider Before you renew that outsourcing contract with your vendor, understand your existing pricing structure and what it buys. Otherwise, you could find yourself paying more for less service. Gain Sharing Motivates Vendors to Boost Your Bottom Line There are plenty of naysayers regarding gain-sharing, and it's not a common way to structure outsourcing deals. This article explains why it's so complex. How Exchange Rates Affect Outsourcing Trends in the exchange rate have to be among the major considerations when you’re selecting from different offshore destination countries. Here's why. How Service Providers Buy Your Business Service providers sometimes "buy the business" by offering very favorable rates for the first few years of an outsourcing contract and making up for the loss of profits throughout the rest of the relationship. Here's how that works... How to keep the offshore hidden costs in check: Part 2: Transitioning cost This two-page report provides seven areas of “best practice” for reducing expenses as you transition from onsite to offsite/offshore staff. How To Reduce Offshore Hidden Costs In this article, we discuss some of the reasons for the high price tab for offshore service provider selection and transitioning of work and provide you with some best practices for reducing the expense. Offshore Pricing Models A brief explanation of each of the five most common structures for pricing in outsourcing and offshoring contracts. Penalties and Incentives in Outsourcing Relationships A rundown on standard penalties and rewards typically used in outsourcing engagements. Sourcing Inside Out: From Lift and Shift to Fix and Mix The key to an effective offshoring strategy is to address performance issues before offshoring, and thereby reap the benefits of both lower salaries and an efficient organization. This article explains that strategy pays off. The Real Costs of Outsourcing, Part 1 You can't believe service provider promises about how much you'll save with offshoring. Here's how to develop a realistic assessment of cost savings. The Real Costs of Outsourcing, Part 2 This whitepaper can help you identify the "hard dollar costs" attributable to outsourcing and give you a more realistic assessment of what it will cost your organization. Total Cost of Offshore: Understanding the True Offshore Financial Rewards and Costs This 10-page whitepaper examines the pricing behind components of an offshore engagement. Where’s the money in outsourcing? If you're still a bit confused about how the economics of outsourcing work in a typical deal, Craig Baty, group vice president and chief of research at Gartner Asia-Pacific, explains the basics in CNET article, "Where's the money in outsourcing?" Submit a Link for Publication Here Have a favorite article or a website that you would like to share with the Sourcingmag community? Share it here and help others understand this topic in greater detail. Or, learn more about writing and submitting an article to be published here..
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