TITLE

A new way to collaborate to create business value

AUTHOR(S)
Bellinger, Alan
PUB. DATE
May 2003
SOURCE
IT Training;May2003, p6
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
A concept called gain-share, is being incorporated into contracts with external service providers (ESPs). Under a gain-share agreement, the rewards directly relate to the business value of the project. The usualapproach adopted by the ESP for charging for the services provided by it includes “cost-plus”: identify the costs and add on a margin for profit. But gain-share is a pricing model thatis value-based, which could mean an ESP would make a loss on the service provision if it doesn't generate value.
ACCESSION #
9847907

 

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