Commercial models allow Clients the ability to engage at different levels of mutual collaboration. These models exercise options in pricing and business alignment influencers.
Our commercial models include several options for pricing offerings. Various pricing options assume different levels of responsibility and risk.
We provide qualified resources on a monthly, daily or hourly rate basis for the defined skill profile when the service provider has limited operation SLA's. However, the responsibility of managing resources and their output remains with the client.
In addition to paying at a monthly, daily or hourly rate for a defined skill profile, the client pays for meeting certain defined deliverables, milestones, schedules or service levels. Project scope is reasonably defined, but is expected to change within certain tolerance levels. The client typically contracts with a core base team, keeping the flexibility to vary resource volumes according to need. To limit cost exposure, the client typically contracts with a "not to exceed" or capped amount.
Requirements, scope, services, features, timing and service levels are also fixed.
Software development projects: The client requires performance of a "project" – i.e. a task with defined deliverables, a definite schedule, and a pre-defined budget
Software maintenance projects: The client requires performance of a defined, recurring, stable scope of work over a time period, with a defined volume band and a mechanism to handle volume changes. Modifications in the scope and other items are handled through a change control process. Pricing trade-offs are established to ensure predictability.
Payments are based on the number of transactions executed or the output generated arising out of a certain business activity. A pool of transactions may be combined into a logical unit, and sub-transactions may be managed as a portfolio. The transaction price may include the price for use of the underlying asset as well as services related to the asset, if it is a platform-based solution.
A business outcome is defined as an observable result or change in business performance which are determined by quarterly revenues, license sales, and software maintenance revenues. Sometimes business outcomes go beyond transactional outcomes.
Our pricing models additionally can leverage contractual business alignment influencers to improve effectiveness. Some of the influencers are:
Service Credits & Rewards
A service-level credit occurs at a specified level of service level failure. Credit mechanisms are structured to reflect the relative importance of the services – the more critical the service, the higher the credit if that service suffers, and these may be re-aligned as priorities change
Additional earning opportunities are identified to enhance motivation and accountability upon achieving certain objectives, that result in additional value for the client.