Tuesday, May 15, 2012
Computerworld recently reported on five trends to watch in the outsourcing industry. Of the trends reported on, one most prevalent was the demand for new pricing models. This demand has specifically been occurring in business process outsourcing agreements with banking industry companies, as reported in a study by Alsbridge.
In the financial industry, companies have deeply integrated outsourcing models with traditional providers for core lending and retail operations, workflow, collateral tracking, client relationship management, and records management solutions for lending and leasing. Companies have built their infrastructures around these outsourcing arrangements, and now find themselves held hostage by provider services and existing fee structures.
This creates a provider-favorable range that allows providers to control pricing construction. In today's banking provider service model, there is a significant disconnect in pricing of services as well as the mechanisms for the way prices are structured.
New pricing models, specifically in the banking industry, are expected to emerge as banking companies push harder for better service levels, descriptions, and pricing. As service models are deeply embedded in the banking service contract, it is possible that the industry will seek the advisement of outside consultants to evolve the construction of service and pricing models.