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Pricing Models
We consider ourselves as a business partner not merely an outsourcing vendor and this is visible in every aspect of our business process. We believe in strong long-term strategic relationship, improved processes, best and secure practices, and a flexible modular approach. This is also applicable to our pricing models.

With this goal in mind we provide the flexibility that best serves your unique business requirements thus ensuring a successful outsourcing partnership with us. You have the option to select one of the following pricing models : fixed price, time & materials, we also combine one or more available models to suit the diverse/ specific requirements of our customers. We work on the following basic engagement models.

Retainer/Resource Model

In this model, the client hires a dedicated FTE/team of FTE's to work on their project on a long term and ongoing basis. Such services typically last from 3 months to 3 years. You can also get services on resource time or hourly basis based on your requirements.

The above is usually monitored through weekly time sheets and progress reports. From the customer's perspective you are always assured of getting what you need and paying for only what is needed. In this model billing is done monthly or bi-monthly based on the number of resources/hours utilized.

Cost plus Pricing Model

This Model is also known as the “open-book" pricing. In this model, the client pays the service provider for the actual cost of the service plus a markup or profit margin. This is a hugely popular model in outsourcing arrangement or build-operate-transfer models. This is also very frequently used as an interim contractual measure and is ideal for efficiency deals. This also brings to the customers complete openness, no hidden fees, no hidden agenda’s, and strengthens a team playing atmosphere.

Transactional Pricing Model

This pricing model is based on actual transactions done or carried out during a certain period of time. This model requires a certain performance metrics, defining the SLA in detail and also specifying acceptable range of transaction quantity and quality.

For this model to suit to the diverse/specific requirements of our customers we generally have to determine the exact preset specifications of the work, get into some trial phase, to determine the correct pricing per transaction which will be acceptable to both of us.

Fixed Price Model

In this pricing model the service is provided for a pre-agreed fixed price basis. Service to be provided is fixed on hard set of specifications or may accommodate certain level of flexibility. A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the provider's cost experience in performing the project. It provides maximum incentive for the provider to control costs and perform effectively and imposes a minimum administrative burden upon the customers. The customers often use a firm-fixed-price contract in conjunction with an Incentive based price model. This actually works well for the providers as well since they leverage optimal measures to ensure more profitability.

Milestone and Incentive Based Model

This model is based on firm achievable milestones, also reinforces progress monitoring. At the end these deliver per the achievable and measurable output. This model helps justify payment and visible progress reduces the risk. This engagement model is well suited for clients who are concerned about highly sensitive projects schedules. The good part about this model is that the core point is to move away from paying for time to paying for results. This model works well when used in combination with Fixed Price model. This allows reducing the risk for the service provider and the customer.

     
Pricing Models
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