Project Management - Business outcome-based pricing models

As a Successful Project Manager, we are constantly looking for Process improvement to reduce the Cost and Quality product on time. Despite of religiously following an existing pricing models like Time&Labor & Fixed Bid, we end-up with disappointments many times. This blog is an Ideation blog to share my thought process on Project Operating Model.   

I have gone through an article about “Business out-come based pricing model” last week. It was very interesting read and I felt that it is much needed for us at this point of time due to many factors including quality of deliverables received from suppliers from outsourcing.

We might have seen many emails stating that there was an issue with System A/B/C, please apologize to all customers for any inconvenience caused etc. I strongly believe the outcome-based pricing model will be a promising solution to prevent such issues if we considered as the supplier will be paid only based on the outcome.

Deriving the out-come SUCCESS criteria for any project will be complicated and which may leads mistrust. If we formalize the SUCCESS criteria for a project prior to outsourcing, outcome-based pricing model will be a real game changer i believe. 

Read business outcome-based pricing model first post link at http://www.firstpost.com/business/igate-aims-to-shake-up-it-billing-model-with-outcome-based-pricing-635462.html

Please post your opinions/suggestion in the comments section below to understand your views..


Thanks,
Nanjundan Chinnasamy