Pricing Model for Sourcing of Services

Pricing Model for Sourcing of Services

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While talking about Sourcing, first thing that comes in the mind is a "Product". Rarely we give a thought to the Sourcing of Service, and thus it remains one of the most neglected "item" from the list of a sourcing executive. In today's business environment, "Services" play a vital role for industry of any nature. Most of the labor intensive and low-grade jobs are being given on contract (third party service provider). The value of such jobs for large industries comes in the tune of millions of dollars per month whereas for medium and small industries this figures varies from several thousand to millions of dollars. Generally contract rates are fixed on the basis of simple negotiations, which don't have any scientific base. This report provides a scientific base for the calculation of Pricing while sourcing a service to a third party service provider.

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