PricePoint Q2 2012 Update: Points to Consider in the Pricing of Outsourcing Services

7 Nov 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.

Trends in blended FTE price 


PricePoint Q2 2012 includes the following:

  • Assessment of pricing drivers in ITO and BPO, including:
    • Buy-side dynamics
    • Supply-side dynamics
    • Key macroeconomic factors
    • Overall impact of the drivers on pricing in Q1 2012
    • Pricing outlook for Q2 2012
  • Featured research
    • Overview of the ITO landscape in the emerging Asia Pacific locations
    • Assessment of tier-2 Indian cities for offshore IT delivery

Resource utilization


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

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

The report also contains the aggregated impact of these pricing drivers on pricing in Q2 2012 and the outlook for Q3 2012.

The featured research section throws a spotlight on the IT outsourcing landscape in the emerging Asia Pacific locations. It also highlights the increasing contribution of tier-2 cities in India’s IT outsourcing market and assesses the advantages of leveraging tier-2 cities for both service providers and buyers.


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