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The Use of Price Benchmarking by Outsourcing Vendors

Publication Date	February 2008
Publisher	IDC
Product Type	Report
Pages	23
ISBN Number	not applicable
Product Code	IDC04155

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Summary

This IDC study focuses on the key ways by which outsourcing vendors utilize benchmarking to improve their ability to effectively price and win business.

"Benchmarking may be the most contentious issue in outsourcing today. It can act as a leverage for positive change in the relationship but also create tension and play a role in alienating outsourcing advisory firms and vendors. The use of internal benchmarking is even being debated inside most outsourcers. Companies such as IBM, CGI, HP, and EDS are grappling with the value of and how to use price benchmarking to be more competitive and win more business."? Mark Schrutt, research manager, Outsourcing Services

Content

IDC Opinion
In This Study
Figure: The Types of Benchmarking
Situation Overview
- Introduction
- The History of Benchmarking
- Figure: Vendors' Use of Price Benchmarking
- Figure: Sources Used to Evaluate Outsourcing Service Providers
- Internal Benchmarking in Today's Outsourcing Organizations
- Table: The Use of Benchmarking by Outsourcing Vendors
- Pricing Deals to Win
- Minimizing the Loss: The Use of Benchmarking by Account Teams
  - Renegotiations and Renewals
  - Contractual Benchmarks
- The Use of Benchmarking by Product Development
- Summary of the Use of Benchmarking
Future Outlook
Essential Guidance
- Advice for Clients
- Advice for Outsourcing Vendors
Learn More
- Related Research
- Appendix: Benchmarking Defined
  - Why Do Outsourcing Clients Benchmark?
  - Figure: Historical Mainframe Outsourcing Price Range (Raw Data)
  - The Process
  - Figure: The Benchmarking Process
- Synopsis