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Will there be shift toward project-based pricing (or outcome-based pricing) services engagements?

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/09/23
georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Agreed with colleagues answers

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

The Shift Toward Project-Based Services Engagements

Buyers have discovered that paying by the hour creates a disincentive for innovation and efficiency. The longer it takes the vendor, the more they earn. However, for the client, the faster they get a solution, the better. The hourly-vendor who delivers the most efficiently makes the least money. In2014, the top performing professional services organizations will start shifting as much as30% of their billing to project-based, or outcome-based pricing (with assumptions to protect themselves). Buyers want results, and they’ll pay for it. However, the savvy customer rarely wants to sign a blank check for hours of time without a defined outcome.

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

Yes indeed, people became more sensitive to efficiency.

I also support the answer of Mr. Vrindavan.

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

In Project based pricing service engagements, the provider not only provides service in time but also updates the machinery and equipment with the updated technology.

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