Outsourcing Price Calculation
Are you curious about how an outsourcing firm calculates the prices for services it charges? Here is a very simple model for an IT data center / applications outsourcing function. The bottom line is, that if you know your current costs, and can estimate what an outsourcing provider might be able to save (say with lower salaries, procurement synergies, etc.), you should be able to calculate the price for outsourcing the service to a third party.
We also have a powerpoint file that explains some of the fields & calculations in a little more detail. Click here for PPT file.