Pay for results, not just person months

Achieve dramatic increase in value from offshore outsourcing

Traditionally, most offshore outsourcing contracts have been based on hourly labor rates or sometimes on fees for specific tasks. That’s an easy way to calculate costs—but it’s not an ideal business model. As a client, you ought to be paying for outcomes and results, not just more hours of labor. And your offshore service vendor should be focusing on product quality and customer satisfaction, not more billable time.

The concept of an “outcome based” business model has attracted a lot of attention recently, and it’s certainly a healthy trend. But it’s often remarkably challenging to implement. Global Development Consulting has put together a white paper that explores the critical questions you’ll encounter as you move toward an outcome-based offshore relationship:

• What’s the basic value proposition?
• How does your relationship with your vendor change?
• What are the economic incentives for the vendor?
• How do you measure “outcomes”?
• Where are the organizational pitfalls?
• How do you link operational metrics with business goals?

If you’re curious about outcome-based offshore relationships, we invite you to download this complimentary white paper. We’re also available to answer your specific questions and to develop a customized roadmap for moving your company to this new model.

Offshoring Success
Cupertino, CA