Value-based pricing and Risk-Reward relationships
Customers increasingly look for better returns than cost arbitrage as offered by the vanilla model of offshoring. In the last few years, the conversations the Anantara team has had with senior client executives of Fortune 500 firms point to the necessity to operate using innovative risk-reward-based models. Value-based pricing is a pricing structure whereby Anantara would collect a large part of its intended fees based on the actual business value it creates for clients, and risk-reward relationships make Anantara a part of the client’s IT and business investment risk.
Collecting the requisite expertise for operating this model requires years of experience. Thanks to the Anantara team’s pioneering moves starting in 1995, team members have collected both theoretical insights and valuable practical experience to make the model succeed.
- Client risks, which are high with fixed price engagements, are considerably mitigated by making the service provider a true business partner
- This model of engagement keeps client and service provider focus sharply on business outcomes viewing IT as an enabler of competitiveness rather than as an end in itself