Please note this benchmarking report is a stand-alone report and is not part of the ITO subscription.

To learn more about Input-based Price Benchmarking, please click here.

Introduction

This report is prepared by the Everest Research Institute to facilitate output-based price benchmarking analysis for IT infrastructure outsourcing deals. We define output-based pricing as a model in which payment to a supplier is based on the consumption of the outsourced service by the buyer through units of output (e.g., price per server, per TByte of storage used).

This report will provide you with the comparative pricing data by resource unit for each tower 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 12 resource units spanning desktop support, network, mainframe, server, storage and helpdesk towers. Eight drivers of pricing (e.g., asset ownership, support location) are included in the benchmarking analysis.  All the data is based on the actual outsourcing deals advised by Everest.

Scope

The report consists of:

• Output-based benchmarking process overview
• Analysis of the pricing drivers in a typical deal
• Benchmarking report by resource unit