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Go4customer Blog

Is Value-driven Pricing Model Here to Stay?


In this competitive landscape, enterprises are striving to map faster growth with cost-effectiveness. For years, buyers and service providers have engaged in conventional outsourcing models. Though these models are safe, they consume relatively more time and resources.

In this light, both clients and service providers are moving away from the manpower related linear growth model to explore new possibilities of maximizing their value. This blog talks about the trilogy of forces, which may push all size businesses to embrace the new value-driven BPO pricing model in the foreseeable future.

Today, technology and margins are deeply impacted due to tough economic pressures. The impact further multiplies as power has shifted in the hands of customers. As a result, organizations are struggling to continuously maintain their profitability and revenues. This calls for companies to look for a strategic step that facilitates them in achieving greater returns on investment while streamlining the efficiencies of their existing processes and reducing labor arbitrages.

The most optimal solution, in this regard, is an outcome-based business process outsourcing model. Over the last few years, the number of contracts received by third-party service providers is significantly rising. These agreements are motivating contact centers to accurately meet their business objectives. This, in turn, creates a win-win situation for both enterprises and vendors to mutually benefit by achieving greater earnings and rendering better services to the end-users.

For this reason, a value optimized pricing strategy allows companies to pay prices primarily on the basis of value as perceived by the customers. This approach is expected to not only enable companies to improve their profitability without impacting their sales volume but also establish a close relationship between a client and service vendor.

The model, so far, has been evidence of stemming continual growth by offering greater incentives to call centers services provider companies to achieve better growth while mitigating potential risks of the buyer’s by limiting their overall costs. Due to this model, clients and outsourcers are left with no room to trim down the price per hour. It additionally empowers buyers to pay less in case providers are not performing up to the mark.

To conclude, the value-based pricing model is a faster-growing approach in the current BPO space. It aligns the vendor’s outlook with its client’s objectives in a better way.

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