PricePoint Q1 2012 Update: Points to Consider in the Pricing of Outsourcing Services

7 Sep 2012



PricePoint reports identify trends in the pricing of ITO (both ADM and Infrastructure) and BPO (both voice and non-voice) services through a comprehensive analysis of key demand-side, supply-side and macroeconomic factors that impact pricing. Additionally, the reports include insights on contemporary outsourcing trends driven by key market developments.

Trend in blended FTE price at offshore (India) for ADM services 


PricePoint Q1-2012 includes the following:

  • Assessment of pricing drivers in ITO and BPO, including:
    • Buy-side dynamics
    • Supply-side dynamics
    • Key macro-economic factors
    • Overall impact of the drivers on pricing in Q1 2012
    • Pricing outlook for Q2 2012
  • Featured research
    • Overview of South African IT outsourcing landscape
    • Trends in BPO services pricing (2006-2012)
    • Outsourcing spend optimization

Resource utilization 


The report contains in-depth analysis of the drivers that impact pricing of ITO and BPO services in India and the United States. The drivers included in the analysis are:

  • Buy-side drivers including deal size, deal volume, value mix, new deal-renewal mix
  • Supply-side drivers including resource utilization, hiring mix, support costs, onshore-offshore mix and service provider financial performance
  • Macro-economic factors including operating cost inflation and foreign exchange rates

The report also contains the aggregated impact of these pricing drivers on pricing in Q1 2012 and the outlook for Q2 2012.

The featured research section shines a spotlight on the IT outsourcing landscape in South Africa. It also highlights the trends in BPO services pricing between 2006-12. Finally, it focusses on portfolio optimization measures that buyers and service providers can adopt to create mutually beneficial outsourcing arrangements.


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