PricePoint: Q4 2012 - Points to Consider in the Pricing of Outsourcing Services

11 Apr 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-side, supply-side and macro-economic factors that impact pricing. Additionally, the reports include insights on contemporary outsourcing trends driven by key market developments.

Trend in blended FTE price 


PricePoint Q4 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 Q4 2012
    • Pricing outlook for Q1 2013
  • Featured research
    • Philippines versus India pricing differential
    • Trend of “pricing optics” strategy

Resource utilization 


This report contains in-depth analysis of the drivers that impact 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 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 Q4 2012 and the outlook for Q1 2013.

The featured research section focuses on pricing differential between India and Philippines in light of the differing trend in inflation and forex for the two countries and provides a framework for adjusting contracted rates for forex fluctuations. It also highlights three “pricing optics” strategies commonly deployed by service providers, to negate the impact of rate card discounts on deal-level margin.


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