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The pressure to optimize application service costs is compounded by the demands of digital business initiatives. Sourcing and vendor management leaders can move to fixed-price, outcome-based contracts, leverage automation and perform an application portfolio analysis to deliver sustainable results.
Table of Contents
Move to Fixed-Price, Outcome-Based Pricing Models
- Benefits of the Fixed-Price Model
- Why the T&M Pricing Model Is Prevalent
- How Agile Development Can Help
- How Productivity Units and Measurement Tools Can Help
Negotiate Year-Over-Year Cost Reductions Through Efficiency and Automation for Application Management Contracts
- Add Efficiency Improvements as KPIs
- Adopt a Reinvestment Model to Incentivize Providers
Conduct an Application Portfolio Analysis to Drive Long-Term Value
- Move to Fixed-Price, Outcome-Based Pricing Models
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