PricePoint Q3 2012 Update: Points to Consider in the Pricing of Outsourcing Services

28 Jan 2013



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-and supply-side as well as macroeconomic factors that impact pricing. The report also includes insights on deal solution dimensions that buyers and service providers are increasingly focusing on, in addition to the steady state pricing.

Trend in blended FTE price 


PricePoint Q3 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 Q3 2012
    • Pricing outlook for Q4 2012
  • Featured research
    • Phases of an outsourcing arrangement
    • From cost take-out to value creation

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 Q3 2012 and the outlook for Q4 2012.

In addition to the analysis of steady state pricing, the featured research section throws a spotlight on deal solution dimensions that buyers and service providers are focusing on, in order to reduce the cost of ownership and maximize value creation in outsourcing deals.


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