Introduction

This report is prepared by the Everest Research Institute to facilitate input-based price benchmarking analysis for IT infrastructure outsourcing deals. We define input-based pricing as a model in which payment to a supplier is based on the supplier’s effort in delivering the outsourced service, measured in the units of input (e.g., labor hours).

This report will provide you with the comparative pricing data by resource skill and an adequate understanding of the pricing drivers in a typical deal environment. This report is aimed at helping suppliers align their company’s pricing strategy with global market standards and should be treated as a pricing intelligence tool that can help a supplier:

• Diagnose whether the pricing offered by a supplier in the recently won deals leaves any money on the table
• Diagnose whether the pricing offered by a supplier in the recently lost deals was the reason for the loss
• Identify acceptable pricing ranges for hypothetical client situations, that reflect likely future supplier’s deals  

Benchmarking is conducted for 16 resource skills on 4 dimensions (i.e., offshore, onshore, offshore resources onsite, onshore resources onsite). While most input-based benchmarking is based on rate cards, Everest added client deal data to provide more robust and insightful product.

Scope

The report consists of:

• Input-based benchmarking process overview
• Analysis of the pricing drivers in a typical deal
• Benchmarking report by skill