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Mention What Are The Various Pricing Model In Outsourcing Companies?

Answer»

Various pricing model in outsourcing companies are:

Variable rate pricing model: When you outsourced the work, many companies PREFER this type of model, in which you have to pay a fixed rate. But this model also gives you the flexibility of paying more or LESS according to the market price

Fixed rate pricing model: In this pricing model, despite market CONDITION, you have to pay the decided amount in the contract. However, this pricing model is not the best pricing model for a long term contract, but many companies prefer this pricing structure

Performance BASED pricing model: In this model payment is done by as per the performance, you have to reward your vendor with incentives based on the performance

Pay per unit pricing model: Depending on the amount of the work done payment is done, the amount of unit is pre-determined

Cost plus profit pricing model: Along with the actual cost of the project outsourcing company has to pay additional fixed percentage on the project. The only downside with this model is that it does not offer the flexibility of changing business objectives or technologies

Bundling pricing model: As an outsourcing company you will be paying less for two or more outsourcing services. However, outsourcing company has to make sure that you do not bundle IT services with short term services

Profit and risk sharing pricing model: This pricing model more or less works like a partnership business or JOINT venture where the profit or loss are equally shared by vendor Company as well as the outsourcing company.

Various pricing model in outsourcing companies are:

Variable rate pricing model: When you outsourced the work, many companies prefer this type of model, in which you have to pay a fixed rate. But this model also gives you the flexibility of paying more or less according to the market price

Fixed rate pricing model: In this pricing model, despite market condition, you have to pay the decided amount in the contract. However, this pricing model is not the best pricing model for a long term contract, but many companies prefer this pricing structure

Performance based pricing model: In this model payment is done by as per the performance, you have to reward your vendor with incentives based on the performance

Pay per unit pricing model: Depending on the amount of the work done payment is done, the amount of unit is pre-determined

Cost plus profit pricing model: Along with the actual cost of the project outsourcing company has to pay additional fixed percentage on the project. The only downside with this model is that it does not offer the flexibility of changing business objectives or technologies

Bundling pricing model: As an outsourcing company you will be paying less for two or more outsourcing services. However, outsourcing company has to make sure that you do not bundle IT services with short term services

Profit and risk sharing pricing model: This pricing model more or less works like a partnership business or joint venture where the profit or loss are equally shared by vendor Company as well as the outsourcing company.



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