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Outsourcing Pricing - Cost Plus vs. Unit Pricing vs. Fixed Fee. Performance Bonuses and Penalties.

Much time is spent by outsourcing clients and suppliers determining the optimal pricing structure for an outsourcing deal. Suppliers want to make a reasonable profit, and clients want to ensure they are getting value for what they spend. Some pricing structures are simple. If an easily counted and comparable “unit” exists for pricing – such as “cost per call” on a call center deal - then the pricing structure is fairly straightforward and easily determined - so long is the price is “reasonable”.

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