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 Back to 2005 Press Releases
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Gartner Consulting Expands Its IT Outsourcing Contract Benchmarking Capability |
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| New Offering Compares Service Providers' Contract Price to Existing Market Prices |
STAMFORD, Conn., November 17, 2005 - Gartner Consulting, a unit of Gartner, Inc., has expanded its IT Outsourcing Benchmarking Solutions capabilities with an enhanced methodology that allows companies to compare their services contracts with similar outsourced contracts in the marketplace.
Gartner's IT Outsourcing Benchmarking Solutions service uses a 4-point proprietary methodology that leads to normalized comparisons regardless of a company's outsourced contract size.
"This expanded capability allows Gartner to compare the service provider's contract prices against actual market prices paid by clients who are buying similar services," said David Howe, group vice president at Gartner Consulting.
In circumstances where applicable contract pricing data is not available in the marketplace, an assessment of market pricing will be used. This approach derives fair market prices by selecting a carefully chosen set of services from Gartner Consulting's benchmark databases that consist of both in-house and outsourced samples. These samples are then adjusted through a series of calculations to arrive at a predicted market price.
This represents a significant enhancement to Gartner Consulting's benchmarking portfolio and is its recommended approach to comply with third party benchmark clauses in IT outsourcing contracts.
"The Price Benchmarking service is directly applicable to outsourced services and can be used to assess internal pricing as well," Mr. Howe said. "Since each outsourcing contract and IT environment is unique, numerous criteria are considered to 'normalize' similar outsourcing deals signed within the past 12 to 18 months to the specific client service profile being studied."
Gartner will continue to provide independent pricing analysis for use in circumstances where a higher level check of pricing is required, such as in a competitive bid situation, or in a sourcing strategy assessment to determine future state pricing for outsourcing an in-house service.
Additional information on Gartner Consulting's Benchmarking Solutions is available on Gartner's Web site at http://www.gartner.com/it/products/consulting/benchmarking.jsp.
CONTACT:
Tom McCall
Gartner
(408) 468-8312
tom.mccall@gartner.com
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About Gartner:
Gartner, Inc. (NYSE: IT) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 9,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,900 associates, including more than 1,200 research analysts and consultants, in more than 75 countries worldwide. For more information,
visit www.gartner.com.
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